The yen appreciated vis-Ã -vis the U.S. dollar today as the greenback tested bids around the Â¥105.65 level and was capped around the Â¥106.95 level. The pair reached its lowest level since May 2005. Bank of Japanâ€™s Policy Board began its two-day policy deliberations today and is expected to keep the overnight call rate unchanged at 0.50%. Most traders believe the BoJ may reduce its GDP growth forecast for the current fiscal year to March 2008 from 1.8% to as low as 1.3%. Data released in Japan overnight saw the November index of leading economic indicators upwardly revised to 18.2 from 10.0 while the coincident index was downwardly revised to 30.0. The Nikkei 225 stock index lost 3.86% to close at Â¥13,325.94. Dollar bids are cited around the Â¥104.20 level. The euro weakened vis-Ã -vis the yen as the single currency tested bids around the Â¥152.80 level and was capped around the Â¥156.10 level. The British pound and Swiss franc depreciated vis-Ã -vis the yen as the crosses tested bids around the Â¥205.65 and Â¥95.75 levels, respectively. The Chinese yuan appreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.2365 in the over-the-counter market, down from CNY 7.2418. Data released in China overnight saw the unemployment rate fall to 4.0% at the end of 2007.
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