The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥104.15 level and was supported around the Â¥103.30 level. Data released in Japan overnight saw Q4 combined capital investment by non-financial companies fall 7.7% y/y, the third consecutive quarterly decline. Japanâ€™s fiscal year ends at the end of the month and Japanese firms will repatriate revenue from overseas, leading to some yen purchases. Prime Minister Fukuda said there wonâ€™t be a vacancy when Bank of Japan Governor Fukui retires on 19 March. BoJ Deputy Governor Muto is seen as the likely successor but opposition political parties are creating roadblocks. Most traders believe BoJâ€™s Policy Board will keep the overnight call rate unchanged at 0.50% for the foreseeable future. The Nikkei 225 stock index lost 0.16% to close at Â¥12,972.06. Dollar bids are cited around the Â¥101.20 level. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥158.70 level and was supported around the Â¥157.00 figure. The British pound and Swiss franc appreciated vis-Ã -vis the yen as the crosses tested offers around the Â¥207.15 and Â¥100.40 levels, respectively. The Chinese yuan depreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.1081 in the over-the-counter market, up from CNY 7.1060. Premier Wen reported China will maintain a tight monetary policy in 2008 to counter inflation. The government sees 2008 CPI around 4.8%. It was reported that Chinaâ€™s foreign reserves totaled US$ 1.59 trillion at the end of January.
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