Chinese yuan unchanged versus US dollar

21 Feb, 2004

The yuan ended unchanged versus the US dollar at 8.2772 on Friday, remaining near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 4,600 points implying a rate of 7.818 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 8.75/10.75 percent.
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 was not immediately available. It climbed to $670 million on Thursday from the previous session's paltry $420 million. The yuan strengthened to 7.6884 against 100 Japanese yen from 7.7492, and firmed against the euro to 10.5185 from 10.5212.

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