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¥108.80 level. Technically, todayâ€™s intraday low was right around the 50% retracement of the move from Â¥107.90 to Â¥109.80. Traders expect Bank of Japan to reduce its official growth forecast for the current fiscal year to about 1.3% on 22 January. BoJâ€™s Policy Board is not expected to change interest rates when policymakers meet and many traders seeing the overnight call rate remaining unchanged at 0.5% for several months. The Nikkei 225 stock index gained 0.49% to close at Â¥14,599.16. Dollar bids are cited around the Â¥107.85/ 20 levels. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥161.65 level and was supported around the Â¥160.00 figure. The British pound came off vis-Ã -vis the yen as sterling tested offers around the Â¥213.85 level while the Swiss franc appreciated vis-Ã -vis the yen and tested offers around the Â¥98.55 level. The Chinese yuan appreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.2620 in the over-the-counter market, down from CNY 7.2643 â€“ the pairâ€™s lowest close since the July 2005 yuan revaluation. A government researcher today estimated the yuan will appreciate less than 10% in 2008.
Join the Discussion