The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥109.70 level and was supported around the ¥108.80 level. Technically, today’s intraday low was right around the 50% retracement of the move from ¥107.90 to ¥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. BoJ’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 ¥14,599.16. Dollar bids are cited around the ¥107.85/ 20 levels. The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥161.65 level and was supported around the ¥160.00 figure. The British pound came off vis-à-vis the yen as sterling tested offers around the ¥213.85 level while the Swiss franc appreciated vis-à-vis the yen and tested offers around the ¥98.55 level. The Chinese yuan appreciated vis-à-vis the U.S. dollar as the greenback closed at CNY 7.2620 in the over-the-counter market, down from CNY 7.2643 – the pair’s lowest close since the July 2005 yuan revaluation. A government researcher today estimated the yuan will appreciate less than 10% in 2008.