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The yuan ended one notch weaker at 8.2767 per US dollar on Thursday, near the stronger end of its managed trading range.

The one-year non-deliverable dollar forward discount versus the yuan was at 1,830 points implying a rate of 8.095 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 4.80/5.20 percent on Thursday. 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, a moderate $590 million on Wednesday, was not immediately available. The yuan firmed to 7.5135 against 100 yen from Wednesday's 7.5495, but weakened against the euro to 9.9960 from 9.9890.

Copyright Reuters, 2004


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