Chinese yuan unchanged

08 Jul, 2005

The yuan on Thursday 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 4,230 points, implying a rate of 7.855 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 6.2/7.2 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 paltry $540 million on Wednesday, was not immediately available. The yuan strengthened to 7.3749 per 100 Japanese yen from 7.4108, and firmed against the euro to 9.8660 from 9.8673.

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