Chinese yuan notches stronger

27 Mar, 2004

The yuan ended one notch stronger versus the dollar at 8.2770 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 3,575 points implying a rate of 7.9205 yuan per dollar in 12 months' time.
One-year implied yuan volatility was traded at 7.00/8.50 percent on Friday.
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 fell to $540 million on Thursday. The yuan weakened to 7.8112 against 100 Japanese yen from 7.8062, but firmed against the euro to 10.0445 from 10.0499.

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