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The yuan ended one notch weaker versus the dollar at 8.2770 on Friday, but remained near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 2,850 points implying a rate of 7.993 yuan per dollar in 12 months' time.
NDFs are transactions 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 7.55/8.50 percent on Friday.
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 for the day was temporarily unavailable. It fell to $590 million on Thursday. The yuan strengthened to 7.7706 against 100 Japanese yen from 7.8275, and firmed against the euro to 10.0007 from 10.1011.
China's central bank managed to sell virtually all of a major bill issue on Tuesday in a year-long effort to combat inflation by soaking up excess funds, having raised yields after failing to sell many of the bills issued in each of the past two weeks.
The People's Bank of China had hoped to issue 50 billion yuan ($7.3 billion) in short-term bills in open market operations this week, same as last week.

Copyright Reuters, 2004

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