The yen appreciated marginally vis-Ã -vis the U.S. dollar today as the greenback tested bids around the Â¥107.90 level and was capped around the Â¥108.30 level. The pairâ€™s range was quite narrow ahead of tonightâ€™s comments from Bank of Japan Governor Fukui. Data released in Japan overnight saw the December all-industries index fall 0.2% m/m, an improvement from Novemberâ€™s 0.5% decline. The December tertiary index was off 0.6% m/m in December while the construction industry index was off 0.1%. The big news in Japan overnight was a report that Japanâ€™s merchandise trade deficit surged to Â¥79.34 billion in January from Â¥3.49 billion one year earlier. The Nikkei 225 stock index gained 2.84% to close at Â¥13,688.28. Dollar bids are cited around the Â¥106.90 level. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥159.55 level and was supported around the Â¥158.90 level. The British pound appreciated vis-Ã -vis the yen as sterling tested offers around the Â¥211.95 level while the Swiss franc weakened vis-Ã -vis the yen as the pair tested bids around the Â¥209.70 level. The Chinese yuan appreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.1413 in the over-the-counter market, down from CNY 7.1436 â€“ the pairâ€™s lowest close since the yuan revaluation of July 2005. The Chinese government reported it expects Chinaâ€™s 2008 trade surplus to be around US$ 320 billion, up 22%.
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