The yen depreciated vis--vis the U.S. dollar today as the greenback tested offers around the 102.70 level and was supported around the 101.60 level. There is increasing speculation that Bank of Japan Deputy Governor Shirakawa the acting Governor could be named the permanent Governor by the Fukuda government without opposition from lawmakers. Japan wants to fill the top slot ahead of next weeks Group of Seven meeting in Washington, D.C. Finance minister Nukaga said he wants the G7 to reaffirm that sharp FX movements are not good for economies. BoJs Policy Board is expected to keep the overnight call rate unchanged at 0.50% next week. The Nikkei 225 stock index shed 0.72% to close at 13,293.22. Dollar offers are cited around the 103.65 level. The euro gained marginal ground vis--vis the yen as the single currency tested offers around 161.05 level and was supported around the 160.10 level. The British pound depreciated vis--vis the yen as sterling tested bids around the 203.25 level while the Swiss franc gained ground vis--vis the yen and tested offers around the 101.65 level. The Chinese yuan lost ground vis--vis the U.S. dollar as the greenback closed at CNY 7.0175 in the over-the-counter market. Industrial and Commercial Bank of China is projecting the March consumer price index advanced 8.2%.
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