Chinese yuan notches weaker

09 Jul, 2004

The yuan finished one notch weaker versus the US dollar at 8.2769 on Thursday, but it was still near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 1,350 points implying a rate of 8.143 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 5.30/5.60 percent on Thursday.
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 hit $520 million on Wednesday. The yuan ended stronger at 7.5884 against 100 Japanese yen from Wednesday's 7.5967, but weakened versus the euro to 10.2284 from 10.1739.

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