Chinese yuan ends lower

04 Dec, 2004

The yuan ended down two notches at 8.2766 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 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.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover, a heavy $1.64 billion on Thursday was not immediately available. The yuan strengthened to 7.9811 against 100 Japanese yen from 8.1004 on Thursday and firmed against the euro to 10.9872 from 11.0630.

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