Chinese yuan notches weaker

06 Mar, 2004

The yuan ended two notches weaker 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 3,850 points implying a rate of 7.893 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 7.35/8.00 percent on Friday.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover was not immediately available. It almost halved to $450 million on Thursday. The yuan strengthened to 7.4409 against 100 Japanese yen from 7.5089, but softened against the euro to 10.1036 from 10.0788.

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