The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥100.20 level and was supported around the Â¥98.80 level. Technically, todayâ€™s intraday low was right around the 23.6% retracement of the move from Â¥108.60 to Â¥95.70. Todayâ€™s is the last day of Japanâ€™s fiscal year and many traders believe Japanese accounts will begin investing yen in overseas markets from next month. Dealers await the release of tonightâ€™s Tankan survey of business confidence for the January â€“ March period and most economists expect a decline in confidence on account of higher input costs and lower global demand. Data released in Japan overnight saw average monthly earnings including bonuses up 1.3% y/y, the second consecutive monthly rise. Also, February housing starts were off 5.0% y/y, the eighth consecutive monthly decline, while orders received by Japanâ€™s 50 largest contractors were up 18.4%. The Ministry of Finance confirmed it did not intervene in the foreign exchange market in March. It was also reported that February industrial production was off 1.2% m/m and was up 4.2% y/y. Dollar offers are cited around the Â¥102.15 level. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥158.10 level and was supported around the Â¥156.05 level. The British pound and Swiss franc appreciated vis-Ã -vis the yen as the crosses tested offers around the Â¥200.05 and Â¥100.50 levels, respectively. The Chinese yuan was unchanged vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.0120 in the over-the-counter market. Peopleâ€™s Bank of China reported it will continue to tighten monetary policy because there are evident upward inflationary pressures. Notably, the consumer price index was up 8.7% y/y in February, the sharpest rise in nearly twelve years. Data released in China overnight saw February fixed-asset investment up 24.3% y/y in the two months to February.
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