The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥105.25 level and was capped around the ¥106.40 level. Technically, today’s intraday high was right around the 38.2% retracement of the move from ¥102.65 to ¥108.55. The pair weakened after it was reported that Bank of Japan’s quarterly Tankan survey of manufacturing sentiment came in better-than-expected. The large manufacturers’ sentiment index fell to 5 in June from 11 in May, the lowest reading since September 2003, but this result was higher than expected. Also, business executives who were polled expect the dollar’s exchange rate to average ¥102.74 in the fiscal year to March 2009, down from the previous estimate of ¥109.21 in December. Other data released today saw May employees’ average pray rise 0.2% while average land prices were up 10% in 2007, the third consecutive annual rise. The Nikkei 225 stock index lost 0.13% to close at ¥13,463.20. Dollar bids are cited around the ¥103.00/ 101.35 levels. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥166.15 level and was capped around the ¥167.35 level. The British pound and Swiss franc weakened vis-à-vis the yen as the crosses tested bids around the ¥210.00 and ¥103.50 levels, respectively. The Chinese yuan depreciated vis-à-vis the U.S. dollar as the greenback closed at the CNY 6.8567 in the over-the-counter market, up from CNY 6.8543. Chinese Premier Wen called on the U.S. to stabilize the U.S. dollar. Data released in China tonight saw the June CLSA PMI survey fall to 53.3 while the June CFLP PMI survey receded to 52.0.
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