The yuan ended one notch weaker at 8.2765 per US dollar on Tuesday, near the stronger end of its managed trading range. The one-year non-deliverable dollar forward discount versus the yuan was at 3,300 points, implying a rate of 7.948 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 5.75/6.90 percent.

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 paltry $670 million was not available. The yuan ended weaker at 7.9166 vs 100 Japanese yen from 7.8261. It also weakened vs the euro to 10.8441 from 10.8082.

Copyright Reuters, 2005