Chinese yuan ends unchanged

21 Jun, 2005

The yuan on Monday ended unchanged 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 4,150 points, implying a rate of 7.863 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 5.5/6.75 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 $1.39 billion on Friday, was not immediately available. The yuan weakened to 7.6081 per 100 Japanese yen from 7.6036, and softened against the euro to 10.1116 from 10.0207.

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