Chinese yuan ends flat

28 Jan, 2005

The yuan ended flat 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 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 7.20/8.35 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 moderate $1.03 billion on Wednesday, was not immediately available. The yuan softened to 8.0073 against 100 Japanese yen from 7.9963 on Wednesday and weakened against the euro to 10.8276 from 10.7425.

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