Chinese yuan unchanged

20 Jul, 2005

The yuan on Tuesday 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 inched higher to 4,800 points, implying a rate of 7.798 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 6.5/7.5 percent.
The yuan moves in a band of 8.2760 to 8.2800 enforced by the central bank.
Turnover, which came to $1.42 billion on Monday was not immediately available. The yuan strengthened to 7.3522 against 100 Japanese yen from 7.4478 on Monday, and ended firmer against the euro at 9.9418 from 9.9743.

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