Chinese yuan higher

07 Sep, 2004

The yuan closed one notch higher at 8.2765 per US dollar on Monday, near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 2,380 points implying a rate of 8.04 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 5.50/6.05 percent on Monday.
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.
The yuan rose to 7.5061 against 100 yen from Friday's 7.5400, and firmed against the euro to 9.9764 from 10.0719.

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