The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥97.95 level and was supported around the Â¥96.85 levels. The pair retraced some of the sizable gains it notched yesterday. Finance minister Nukaga verbally intervened again overnight, saying The [Group of Seven] shares the view that excessive currency moves are undesirable for the world economy, so [Japan] will closely monitor the market and reiterated current moves are excessive. Nukaga did not speak directly about the prospect of a yen-selling intervention to give the U.S. dollar some support but said Japan will continue to consult with the U.S. and Europe. The Fukuda government put forth a new candidate, former MoF bureaucrat Koji Tanami, as its nominee to assume the governorship of Bank of Japan after Governor Fukui retires tomorrow. Opposition lawmakers have signaled they will not support Tanami, much as they failed to support former nominee Muto. The Nikkei 225 stock index gained 1.50% to close at Â¥11,964.16. Dollar offers are cited around the Â¥100.65 level. The euro gained ground vis-Ã -vis the yen as the single currency tested offers around the Â¥154.65 level and was supported around the Â¥152.55 level. The British pound and Swiss franc moved higher vis-Ã -vis the yen as the crosses tested offers around the Â¥197.60 and Â¥99.15 levels, respectively. The Chinese yuan appreciated vis-Ã -vis the U.S. dollar today as the greenback tested bids around the CNY 7.0815 level, down from CNY 7.0830 and the pairâ€™s lowest close since the yuan revaluation of July 2005. Peopleâ€™s Bank of China announced it is lifting the reserve ration requirement by 50bps from 25 March, meaning the rate for most banks will be 15.5%. China was forced to make the move on account of rampant credit growth and inflation. Data released in China today saw February property prices in 70 major cities up 10.9% y/y. Premier Wen said China has no plans to change its inflation growth target from its current target of 4.8%.
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