The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥90.75 level and was supported around the ¥89.70 level. Risk appetite returned to the market after Bank of America received a large bailout from the U.S. government to help finance its acquisition of Merrill Lynch and Citigroup finally decided to split into two entities and shed businesses that lost money. Bank of Japan Governor Shirakawa today reported sustained global market tensions are affecting financial institutions' businesses through stock price falls and rising credit costs. BoJ’s Policy Board convenes next week and may decide to purchase corporate bonds outright. Nikkei reported the BoJ may decide to purchase up to ¥2 trillion in commercial paper to enhance short-term corporate financing. The central bank lowered its assessment of regional economies in its regional report released today. The Nikkei 225 stock index climbed 2.58% to close at ¥8,230.15. 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 ¥120.70 level and was supported around the ¥117.75 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥135.70 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥81.40 level. The Chinese yuan came off vis-à-vis the U.S. dollar as the greenback closed at CNY 6.8374 in the over-the-counter market, up from CNY 6.8363. People’s Bank of China Governor Zhou reported The international financial crisis is still spreading, and the risk of global recession is increasing. China's economic development will face a harsher and more complicated situation.
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