The yen extended recent gains vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥102.90 level and was capped around the ¥103.55 level. North American dealers bought the pair back yesterday after it had plumbed to multi-year lows. More verbal intervention was evident overnight as finance minister Nukaga said We will keep watching movements in foreign exchange rates from now on. Economy minister Ota said the yen’s moves were abnormally rapid and added I'm really concerned about the recent abnormal strengthening of the yen against the dollar. The strong yen is hurting the profits of Japanese corporations. Similarly, Prime Minister Fukuda reported he was watching the yen with the utmost care. Most dealers do not believe the government will order the Bank of Japan to intervene by selling yen anytime soon. Data released in Japan overnight saw the February monetary base rise 0.1% y/y. Most traders expect Bank of Japan’s Policy Board to keep the overnight call rate unchanged at 0.50% for the foreseeable future. The Nikkei 225 stock index climbed marginally to close at ¥12,992.28. Dollar bids are cited around the ¥101.20 level. The euro came off vis-à-vis the yen as the single currency tested bids around the ¥156.50 level and was capped around the ¥157.40 level. The British pound and Swiss franc depreciated vis-à-vis the yen as the crosses tested bids around the ¥204.40 and ¥99.05 levels, respectively. The Chinese yuan depreciated marginally vis-à-vis the U.S. dollar as the greenback closed at CNY 7.1060 in the over-the-counter market, up from CNY 7.1041.