The yuan ended one notch weaker at 8.2765 per US dollar on Tuesday, near the stronger end of its managed trading range. The one-year non-deliverable dollar forward discount versus the yuan was at 4,000 points, implying a rate of 7.878 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 at 7.25/7.85 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 hit a strong $1.85 billion on Tuesday, up from $1.0 billion on Monday. The yuan weakened to 7.9593 against 100 Japanese yen from 7.8991 on Monday and softened against the euro to 10.8489 from 10.8190.