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The yuan ended unchanged at 8.2770 per US dollar on Monday, near the stronger end of its managed trading range.

The one-year non-deliverable dollar forward discount versus the yuan was at 1,250 points implying a rate of 8.153 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 5.20/5.70 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 was not immediately available. It reached a thin $520 million on Friday.

The yuan weakened to 7.4409 against 100 Japanese yen from 7.4027 on Friday, and softened against the euro to 9.9741 from 9.9699.

Copyright Reuters, 2004


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