The yen depreciated marginally vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥91.80 level and was supported around the ¥90.55 level. Bank of Japan Governor Shirakawa said the central bank will discuss additional policy steps to ease corporate credit strains and some BoJ-watchers believe this may entail an increase in corporate debt purchases. BoJ will be attentive to funding needs around the end of the fiscal year in six weeks and this should also keep downward pressure on interest rates. BoJ’s Policy Board convenes next week and may announce plans to extend special lending facilities. The Nikkei 225 stock index gained 0.96% to close at ¥7,779.40. 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 ¥118.75 level and was supported around the ¥116.55 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥133.00 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥79.45 level. The Chinese yuan depreciated vis-à-vis the U.S. dollar as the greenback closed at CNY 6.8392 in the over-the-counter market, up from CNY 6.8345.
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