The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥98.15 level and was supported around the Â¥97.00 figure. The yen was given across the board as some risk appetite returned to the markets following significant losses in global equity markets yesterday. There is ongoing speculation Japan may pursue a weaker yen in the coming months to counter its eroding trade balance, historically a major contributor to the country€™s gross domestic product. Bank of Japan Policy Board member Suda speaks overnight and may discuss the central bank€™s plans to purchase additional market assets such as Japanese government bonds. The Nikkei 225 stock index lost 0.69% to close at Â¥7,229.72. U.S. dollar offers are cited around the Â¥104.15 level. The euro moved higher vis-Ã -vis the yen as the single currency tested bids around the Â¥124.25 level and was supported around the Â¥121.70 level. The British pound moved higher vis-Ã -vis the yen as sterling tested offers around the Â¥138.60 level while the Swiss franc moved higher vis-Ã -vis the yen and tested bids around the Â¥83.90 level. The Chinese yuan depreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 6.8413 in the over-the-counter market, down from CNY 6.8438. People€™s Bank of China Vice Governor Su Ning reported China€™s foreign reserves are only invested outside of China to avoid inflation the country€™s money supply. Commerce Minister Chen said there is not a need for the yuan€™s exchange rate to depreciate slightly now.
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