Short-dated RMB forwards curve widens
Since the beginning of the month, three-month NDFs have traded at 7.22 per dollar, which compares with 7.18 on the dollar for an onshore forward. This switch in pricing between onshore forwards and offshore NDFs has only been seen once this year - in August when spreads widened sharply due to anxiety over the US credit crisis. By September, the offshore rate stood at 7.42, just below the onshore rate of 7.47.
Traders say the effect is seen only on the short-tenured NDFs. "The cross happened with
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