The yen appreciated vis-Ã -vis the U.S. dollar today as the greenback tested bids around the Â¥106.30 level and was capped around the Â¥107.65 level. Technically, todayâ€™s intraday low was right around the 50% retracement of the move from Â¥104.95 to Â¥107.85. Tokyo hosted this weekendâ€™s Group of Seven meeting and it is clear there was little agreement as far as exchange rates are concerned. Policymakersâ€™ focus on major economic issues such as the subprime fallout raised risk aversion over the weekend and the yen was a beneficiary of the decreased risk appetite today. Speculation is mounting that Bank of Japan Deputy Governor Muto will be nominated this week to replace outgoing Governor Fukui, whose term expires on 19 March. Dollar bids are cited around the Â¥105.65/ Â¥104.95 levels. The euro weakened vis-Ã -vis the yen as the single currency tested bids around the Â¥154.85 level and was capped around the Â¥156.35 level. The British pound and Swiss franc moved lower vis-Ã -vis the yen as the crosses tested bids around the Â¥206.80 and Â¥96.75 levels, respectively. In Chinese news, the G7 toned down its rhetoric concerning China and the appreciation of the yuan, replacing stress with encourage regarding an acceleration of the appreciation.
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