The yen appreciated vis-Ã -vis the U.S. dollar today as the greenback tested bids around the Â¥97.90 level and was capped around the Â¥99.15 level. The yen was mixed across the board as risk appetite returned to some equities markets. Central bankers have been driving home the message that many of the world€™s largest financial institutions are too important to fail and spreads on credit default swaps came in overnight on that message and other developments. European Central Bank President Trichet yesterday said policymakers are striving to mitigate systemic risk and Federal Reserve Chairman Bernanke again reiterated banks maintain sufficient capital. Data released in Japan overnight saw the January leading index improve to 10.0 from 8.3 in December while the coincident index printed at 0.0. Most traders expect Bank of Japan will continue to ease monetary policy through asset purchases. The Nikkei 225 stock index lost 0.44% to close at Â¥7,054.98. 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 offers around the Â¥126.05 level and was supported around the Â¥124.30 level. The British pound moved lower vis-Ã -vis the yen as sterling tested offers around the Â¥137.05 level while the Swiss franc moved higher vis-Ã -vis the yen and tested offers around the Â¥85.85 level. The Chinese yuan depreciated vis-Ã -vis the U.S. dollar as the greenback closed at CNY 6.8410 in the over-the-counter market, up from CNY 6.8398.
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