Chinese yuan unchanged

22 May, 2004

The yuan closed unchanged versus the US dollar at 8.2772 on Friday, near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 2,300 points implying a rate of 8.048 yuan per dollar in 12 months' time.
NDFs are a transaction 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 7.00/7.50 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, but came to $220 million on Thursday.
The yuan ended softer against 100 Japanese yen to 7.3949 from Thursday's 7.2880, and weakened against the euro to 9.9129 versus 9.9116.

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