Dollar/yuan NDFs drift lower in line with USD's broad weakness in thin trade, showing little reaction to China's second reserve requirement hike this year to temper robust lending. A trader in Singapore says NDF trade should be limited throughout the Lunar New Year holidays.
One-year NDFs dip to a low of 6.6435 vs 6.6480 late on Tuesday, implying 2.8 per cent appreciation. Spot yuan ended at 6.833/USD on Friday - the last trading day before the weeklong holiday - after having jumped to a 4-month high of 6.8351 last week.