Chinese yuan notches weaker

26 Jun, 2004

The yuan ended two notches weaker versus the US dollar at 8.2767 on Friday, but remained near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 2,000 points implying a rate of 8.078 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 5.90/6.70 percent on Friday.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover for the day fell to $690 million from $840 million on Thursday. The yuan ended weaker at 7.6803 against 100 Japanese yen from Thursday's 7.6579, and softened against the euro to 10.0580 from 9.9819.

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