The yuan ended one notch firmer at 8.2764 per US dollar on Monday, near the stronger end of its managed trading range. The one-year non-deliverable dollar forward discount versus the yuan was at 3,840 points, implying a rate of 7.894 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 7.40/8.40 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 was decent at $1.33 billion, though that was down from $1.41 billion on Friday. The yuan firmed to 7.9901 against 100 Japanese yen from 8.0217 on Friday and strengthened against the euro to 10.7761 from 10.7833.