The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥107.95 level and was supported around the Â¥107.15 level. Technically, todayâ€™s intraday low was just below the 23.6% retracement of the move from Â¥114.65 to Â¥104.95. The Japanese government provided new evidence that deflationary pressures are lessening, reporting the demand-supply gap registered +0.7% in Q4 compared with +0.2% in Q3. This means demand is increasing relative to supply and was the fifth consecutive month that GDP remained in positive territory. Traders await the corporate services price index tonight. The Nikkei 225 stock index gained 3.07% to close at Â¥13,914.57. Dollar bids are cited around the Â¥106.15 level. The euro appreciated vis-Ã -vis the yen as the single currency tested offers around the Â¥159.85 level and was supported around the Â¥158.90 level. The British pound and Swiss franc gained ground vis-Ã -vis the yen as the crosses tested offers around the Â¥212.25 and Â¥99.15 levels, respectively. The Chinese yuan depreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.1522 in the over-the-counter market, up from CNY 7.1418. China and the European Union will convene high-level economic talks in April. Peopleâ€™s Bank of China released its full Q4 monetary policy report on Friday and reported The PBOC will further allow the exchange rate to play its role in adjusting international payments, guiding structural adjustments and curbing increasing prices. This is one of the most aggressive statements PBoC has made since the yuan revaluation of July 2005.
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