The yuan ended one notch softer at 8.2765 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 3,850 points, implying a rate of 7.893 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 7.30/8.00 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 rose to $1.02 billion from a thin $730 million on Wednesday. The yuan firmed to 8.0629 against 100 Japanese yen from 8.0700 on Wednesday and strengthened against the euro to 10.7633 from 10.7772.