The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥99.55 level and was supported around the Â¥98.50 level. Data released in Japan overnight evidenced a dramatically weakening economy. First, unemployment climbed to its highest level in four years, printing at 4.8%. Second, the March core consumer price index fell 0.1%, the first year-over-year decline since late 2007 and these data evidence a greater potential of a deflationary spiral. Collectively, these data suggest Bank of Japan may need to provide additional monetary stimuli and this will likely increase pressure on the government to provide more fiscal stimuli. The Nikkei 225 yesterday stock index climbed 1.69% to close at Â¥8,977.37. 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¥132.35 level and was supported around the Â¥130.30 level. The British pound moved higher vis-Ã -vis the yen as sterling bstested offers around the Â¥148.30 level while the Swiss franc moved higher vis-Ã -vis the yen and tested offers around the Â¥87.60 level. In Chinese news, the U.S. dollar ended at CNY 6.8230 in the over-the-counter market.
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