Chinese yuan notches weaker

21 Jan, 2004

The yuan ended six notches weaker versus the US dollar at 8.2772 on Tuesday, still near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 4,100 points implying a rate of 7.868 yuan per dollar in 12 months' time.
NDFs are a transaction where a forward price is agreed between a customer and a bank, but settlement on the value date is undertaken entirely in US dollars.
One-year implied yuan volatility was at 8.00/9.50 percent on Tuesday.
Implied volatility is a measure of how much the options market expects the price of the underlying asset to move during the life of the option.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover plunged to $480 million from a strong $1.36 billion on Monday. The yuan firmed against 100 Japanese yen to 7.6994 from 7.7585, and strengthened a whisker against the euro to 10.2368 from 10.2369.

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