The yuan on Wednesday ended two notches firmer at 8.2765 per US dollar, near the stronger end of its managed trading range. The one-year non-deliverable dollar forward discount versus the yuan stood at 4,400 points, according to brokers Prebon Yamane, implying a rate of 7.838 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 5.8/6.6 percent. The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank. Turnover, a decent $1.62 billion on Tuesday, was not immediately available. The yuan firmed to 7.6384 per 100 Japanese yen from 7.6396, and strengthened against the euro to 10.2043 from 10.2570.