Chinese yuan unchanged

06 Jul, 2005

The yuan on Tuesday ended unchanged at 8.2764 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 traded at 6.1/6.9 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, which was a moderate $1.34 billion on Monday was not immediately available. The yuan strengthened to 7.3956 per 100 Japanese yen from 7.4116, and firmed against the euro to 9.8387 from 9.8661.

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