Chinese yuan weaker versus US dollar

08 Jun, 2004

The yuan ended two notches weaker versus the US dollar at 8.2768 on Monday, near the stronger end of its managed trading range.
The one-year non-deliverable dollar forward discount versus the yuan was at 2,350 points implying a rate of 8.043 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 6.60/7.60 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, which hit $520 million on Friday was not immediately available. The yuan ended weaker at 7.5145 against 100 Japanese yen from 7.4433 on Friday, and softened against the euro to 10.2001 from 10.1016.

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