Chinese yuan notches stronger

21 Jul, 2004

The yuan ended a notch stronger versus the US dollar at 8.2765 on Tuesday, near the stronger end of its trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 1,070 points implying a rate of 8.171 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 4.90/5.50 percent on Tuesday.
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, a moderate $600 million on Monday, was not immediately available. The yuan firmed to 7.6276 against 100 Japanese yen from Monday's 7.6419 and strengthened versus the euro to 10.2800 from 10.3026.

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