The yen weakened vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥111.35 level and was supported around the Â¥110.65 level. Technically, todayâ€™s intraday low was right around the 76.4% retracement of the move from Â¥111.75 to Â¥107.20. Japanâ€™s Economic Planning Agency reduced its GDP forecast for the fourth quarter to December to an annualized 1.02%. Likewise, many economists believe BoJâ€™s quarterly tankan survey that will be released on 14 December will see business sentiment deteriorate along with downward revisions to capital expenditure plans. Data released in Japan overnight saw October leading economic indicators rise to +20 from 0 in September while the coincident index improved to 66.7 from 54.5. The Nikkei 225 stock index gained 1.70% to close at Â¥15,874.08. Dollar bids are cited around the Â¥109.25 level. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥162.85 level and was supported around the Â¥161.20 level. The British pound and Swiss franc appreciated vis-Ã -vis the yen as the crosses tested offers around the Â¥225.55 and Â¥98.70 levels, respectively. The Chinese yuan depreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 7.4095 in the over-the-counter market, up from CNY 7.3880. Peopleâ€™s Bank of China is expected to tighten monetary policy further in 2008, if not sooner.
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