The yuan ended one notch lower at 8.2764 per US dollar on Thursday, near the stronger end of its managed trading range. The one-year non-deliverable dollar forward discount versus the yuan was at 4,250 points implying a rate of 7.853 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 8.00/9.25 percent.
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 heavy $1.65 billion on Wednesday, was not immediately available. The yuan weakened to 8.1004 against 100 Japanese yen from 8.0472 on Wednesday and softened against the euro to 11.0630 from 11.0251.