Chinese yuan notches stronger

20 Mar, 2004

The yuan ended two notches stronger versus the dollar at 8.2773 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 3,700 points implying a rate of 7.908 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 7.50/8.50 percent on Friday.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover for the day was not immediately available. It rose to $580 million on Thursday. The yuan weakened to 7.7192 against 100 Japanese yen from 7.7168, and softened against the euro to 10.2535 from 10.1384.

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