Chinese yuan weaker

23 Mar, 2004

The yuan ended one notch weaker versus the dollar at 8.2774 on Monday, remaining near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 3,500 points implying a rate of 7.928 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 7.00/9.00 percent on Monday.
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 not immediately available. It rose to $620 million on Friday. The yuan strengthened to 7.7158 against 100 Japanese yen from 7.7192, and firmed against the euro to 10.1427 from 10.2535.

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