The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥107.45 level and was supported around the Â¥106.50 level. Traders lifted the pair on concerns that the pullback in U.S. economic activity is reducing demand for Japanese exports. It was reported that December industrial output was up 1.4% m/m, below forecasts, and was up 0.7% y/y, down from Novemberâ€™s +2.9% y/y print. The government also lowered its outlook for industrial output for the first time in seven months. The Nikkei 225 stock index lost 0.99% to close at Â¥13,345.03. Dollar bids are cited around the Â¥104.20 level. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥158.85 level and was supported around the Â¥157.40 level. The British pound and Swiss franc gained ground vis-Ã -vis the yen as the crosses tested offers around the Â¥213.65 and Â¥98.35 levels, respectively. The Chinese yuan appreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.1916 in the over-the-counter market, down from CNY 7.1945 and the pairâ€™s weakest close since the July 2005 yuan revaluation. Chinese consumer confidence weakened and it was reported that consumption comprised the largest component of 2007 GDP growth for the first time since 2001.
Join the Discussion