The yen depreciated vis--vis the U.S. dollar today as the greenback tested offers around the 102.75 level and was supported around the 101.50 level. The pair reached its highest level since 12 March as sentiment in the U.S. dollar continued to improve. The Japanese government reported Bank of Japans basic thinking on interest rates will be maintained. Data released in Japan overnight saw the March monetary base remained unchanged y/y at 88.39 trillion. Most traders believe BoJs Policy Board will keep monetary policy unchanged for the foreseeable future. The Nikkei 225 stock index gained 4.21% to close at 13,189.36. Dollar offers are cited around the 103.65 level. The euro appreciated vis--vis the yen as the single currency tested offers around the 160.45 level and was supported around the 158.55 level. The British pound and Swiss franc moved higher vis--vis the yen and tested offers around the 203.75 and 101.25 levels, respectively. In Chinese news, the yuans central parity rate vis--vis the U.S. dollar was set at CNY 7.0292, up from CNY 7.0218. U.S. Treasury Secretary Paulson continues his meetings in Beijing this week. The Chinese government reiterated Peoples Bank of China will implement a tight monetary policy in 2008.
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