The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥100.15 level and was supported around the ¥98.55 level. Bank of Japan Deputy Governor Nishimura reported Should the economy continue its gradual expansion under a stable price environment, we should maintain our basic policy stance. But when there are strong uncertainties about the outlook, just like now, we should not prejudge anything but should cautiously assess the feasibility of the standard economic outlook as well as both upside potential and downside risk. BoJ Policy Board member Suda said Until signs appear that the real economy is worsening to some extent, (the BoJ) won't likely take monetary easing steps aggressively and added Price conditions in Japan remain healthy. The markets are pricing in less than a 10% chance that the central bank will reduce its overnight call rate by 25bps at the 8-9 Policy Board meeting. Finance minister Nukaga verbally intervened in the foreign exchange market, saying the government will monitor developments closely and with great interest. If the market turns highly volatile and shows wild swings…we may discuss the situation with our (foreign) counterparts. Data released in Japan overnight saw January – February industrial companies’ profits up 16.5%. The Nikkei 225 stock index lost 0.80% to close at ¥12,604.58. Dollar offers are cited around the ¥102.15 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥155.85 level and was capped around the ¥157.85 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥201.70 level while the Swiss franc came off vis-à-vis the yen and tested bids around the ¥99.50 level. The Chinese yuan appreciated vis-à-vis the U.S. dollar as the greenback closed at CNY 7.0105 in the over-the-counter market, down from CNY 7.0318, the pair’s lowest close since the yuan revaluation of July 2005.