The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥109.70 level and was supported around the Â¥108.45 level. Technically, todayâ€™s intraday high was just above the 23.6% retracement of the move from Â¥114.65 to Â¥107.85. Data released in Japan overnight saw the December monetary base up 0.4% y/y. Bank of Japan is expected to keep the overnight call rate unchanged at 0.5% when policymakers convene in a couple of weeks. The central bank, however, is expected to downwardly revise GDP forecasts to around 1.3% for the current fiscal year. Bank lending and an economic survey will be released in Japan on Friday. The Nikkei 225 stock index lost 1.30% to close at Â¥14,500.55. Dollar bids are cited around the Â¥107.20 level. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥160.95 level and was supported around the Â¥159.90 level. The British pound moved higher vis-Ã -vis the yen as sterling tested offers around the Â¥216.15 level while the Swiss franc moved lower vis-Ã -vis the yen and tested bids around the Â¥97.60 level. The Chinese yuan appreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.2690 in the over-the-counter market, down from CNY 7.2732, the pairâ€™s lowest close since the yuan revaluation of July 2005. PBoC Governor Zhou said the yuanâ€™s recent appreciation represents feedback of economic data statistics including Chinaâ€™s trade surplus, rising inflation, and the high price of oil.
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