The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥98.65 level and was supported around the Â¥97.15 level. Traders are talking about Switzerland€™s interest rate cut yesterday and announcement that it will pursue quantitative easing measures including currency intervention to try and shore up the Swiss economy. Some dealers believe this will pave the way for Japanese monetary authorities to conduct yen-selling intervention while others believe Japan will be less inclined to weaken its currency. Data released in Japan today saw the February consumer sentiment index print at 26.7, up from 26.4 in January. Also, January revised industrial output was off 10.2% m/m. The Nikkei 225 stock index climbed 5.15% to close at Â¥7,569.28. U.S. dollar offers are cited around the Â¥104.15 level. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥127.65 level and was supported around the Â¥125.40 level. The British pound moved higher vis-Ã -vis the yen as sterling tested offers around the Â¥138.35 level while the Swiss franc moved lower vis-Ã -vis the yen and tested offers around the Â¥83.15 level. The Chinese yuan appreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 6.8380 in the over-the-counter market, down from CNY 6.8383. Chinese Premier Wen Jiabao reported China will announce a new fiscal stimulus package if and when it is needed. He also indicated China is €œworried€ about its holdings of U.S. Treasuries given the U.S.€™s declining financial position.
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