Chinese yuan notches softer

14 Aug, 2004

The yuan closed three notches softer at 8.2768 per US dollar on Friday, near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 1,600 points implying a rate of 8.118 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 5.00/5.80 percent on Friday.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover, a small $410 million on Thursday, was not immediately available. The yuan strengthened to 7.3966 against 100 yen from Thursday's 7.4735, and firmed a tad against the euro to 10.1239 from 10.1252.

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