The yen appreciated vis-Ã -vis the U.S. dollar today as the greenback tested bids around the Â¥112.65 level and was capped around the Â¥114.00 figure. Technically, todayâ€™s intraday low was right around the 61.8% retracement of the move from Â¥115.90 to Â¥107.20. Data released in Japan today saw November core CPI up for the second consecutive month, up 0.4% y/y and above expectations. Overall CPI was up 0.6% and the core CPI data are important because they suggest price conditions may be improving sufficiently to justify a 25bps rate hike by Bank of Japan in H1 2008. Other data released overnight saw November retail sales up 1.6% while November industrial output fell 1.6% m/m and was up 2.9% y/y. Also, the November unemployment rate fell back to 3.8% from 4.0% in October. The Nikkei 225 stock index lost 1.65% to close at Â¥15,307.78. Dollar bids are cited around the Â¥112.50/ Â¥111.75 levels. The euro came off vis-Ã -vis the yen as the single currency tested bids around the Â¥165.00 figure and was capped around the Â¥166.45 level. The British pound lost ground vis-Ã -vis the yen as sterling tested bids around the Â¥225.10 level and was capped around the Â¥227.60 level while the Swiss franc appreciated vis-Ã -vis the yen and tested offers around the Â¥100.30 level. In Chinese news, the yuanâ€™s central parity rate vis-Ã -vis the U.S. dollar was set at a record low 7.3046 yuan vis-Ã -vis the U.S. dollar.
Join the Discussion