Chinese yuan notches firmer

18 Feb, 2004

The yuan ended two notches firmer versus the US dollar at 8.2770 on Tuesday, remaining near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 4,625 points implying a rate of 7.8155 yuan per dollar in 12 months' time.
NDFs are transactions 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 traded at 9.25/11.25 percent on Tuesday.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover was temporarily unavailable. It rose to $690 million on Monday from the previous session's $430 million. The yuan strengthened to 7.8279 against 100 Japanese yen from 7.8414, and weakened against the euro to 10.5711 from 10.5341.

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