The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥97.15 level and was supported around the ¥96.05 levels. The pair retraced most of the intraday losses incurred in late North American dealing yesterday. Traders are closely watching the political kabuki in Japan where the opposition Democrats are trying force an early election by delaying key bills designed to assist struggling banks. Traders are closely monitoring this week’s Bank of Japan Policy Board meeting with most expecting no additional easing at this time after having cut the unsecured call rate by 20bps to 30bps in October. Still, it is possible the central bank may adopt other measures designed to steer money market rates lower. Economy minister Yosano warned the next fiscal year beginning in April could also see negative growth. The Nikkei 225 stock index lost 2.28% to close at ¥8,328.41. U.S. dollar offers are cited around the ¥104.15 level. The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥122.95 level and was supported around the ¥121.00 figure. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥146.00 figure while the Swiss franc gained ground vis-à-vis the yen and tested offers around the ¥80.95 level. The Chinese yuan depreciated vis-à-vis the U.S. dollar as the greenback closed at CNY 6.8284 in the over-the-counter market, up from CNY 6.8269.