The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥107.15 level and was capped around the ¥108.15 level. Technically, today’s intraday low was right around the 23.6% retracement of the move from ¥102.65 to ¥108.55. Bank of Japan Policy Board member Nakamura reported inflationary risks have become more heightened this month. Most traders expect BoJ will keep its overnight call rate unchanged at 0.50% for several months. Prime Minister Fukuda announced measures to help Japanese businesses deal with the high price of oil. Japanese officials and their G8 counterparts will discuss elevated energy and food costs next month at the Group of Eight summit in northern Japan. The Nikkei 225 stock index lost 0.05% to close at ¥13,822.32. Dollar bids are cited around the ¥103.00/ 101.35 levels. The euro came off vis-à-vis the yen as the single currency tested bids around the ¥168.00 figure and was capped around the ¥169.45 level. The British pound and Swiss franc weakened vis-à-vis the yen as the crosses tested bids around the ¥212.10 and ¥104.05 levels, respectively. The Chinese yuan depreciated vis-à-vis the U.S. dollar as the greenback closed at CNY 6.8657 in the over-the-counter market, up from CNY 6.8653.
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