The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥92.45 level and was capped around the ¥94.15 level. The pair continues to orbit the ¥92.70 level, representing the 23.6% retracement of the move from ¥110.65 to ¥87.10. The Japanese press reported the government is considering providing cash injections to 40 or more regional banks to stimulate lending and counter the credit crunch. Dealers are also closely monitoring any news regarding an additional fiscal stimulus along with details of the political problems faced by Prime Minister Aso. The Nikkei 225 stock index climbed 1.74% to close at ¥9,239.24. U.S. dollar offers are cited around the ¥104.15 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥125.80 level and was capped around the ¥127.65 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥140.55 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥85.25 level. The Chinese yuan strengthened vis-à-vis the U.S. dollar as the greenback closed at CNY 6.8330 in the over-the-counter market, down from CNY 6.8370.
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