The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥108.20 level and was supported around the Â¥107.00 figure. The pair reached its highest level since 15 January as speculation increased that Bank of Japan will be forced to keep its overnight rate unchanged at 0.50% for the foreseeable future â€“ or even reduce rates this year. Data released in Japan overnight saw January consumer confidence decline to its lowest level in more than four years, printing at 37.5. Also, the January current account surplus fell 4.7% y/y to Â¥1.697 trillion and January corporate failures were off 0.3% m/m. Other data saw the January corporate goods price index rise 3.0% y/y â€“ the fastest increase since March 1981. BoJâ€™s Policy Board meeting begins tonight. The Nikkei 225 stock index gained 0.36% to close at Â¥13,068.30. Dollar bids are cited around the Â¥105.65/ 104.95 levels. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥157.65 level and was supported around the Â¥155.80 level. The British pound and Swiss franc appreciated vis-Ã -vis the yen as the crosses tested offers around the Â¥212.25 and Â¥97.65 levels, respectively. The Chinese yuan depreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.2000 in the over-the-counter market, up from CNY 7.1840.
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