The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥96.75 level and was supported around the Â¥94.45 level. The yen was firmly given across the board as risk appetite strengthened and traders moved into currencies with higher-yielding assets. There has not been much verbal intervention from Japanese monetary officials and there is little expectation that actual intervention will materialize now. Bank of Japan is expected to keep monetary policy unchanged for foreseeable future, especially after the central bank and government upgraded their respective assessments of the economy one week ago. The Nikkei 225 yesterday stock index rallied 1.63% to close at Â¥9,677.75. 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¥137.25 level and was supported around the Â¥133.90 level. The British pound moved higher vis-Ã -vis the yen as sterling tested offers around the Â¥159.15 level while the Swiss franc moved higher vis-Ã -vis the yen and tested offers around the Â¥90.45 level. In Chinese news, the U.S. dollar weakened vis-Ã -vis the Chinese yuan as the greenback closed at CNY 6.8257 in the over-the-counter market, down from CNY 6.8273. U.S. Treasury Secretary Geithner is meeting Chinese officials in China and said China€™s U.S. dollar assets are €œvery safe,€ reiterating the U.S. believes in a strong U.S. dollar. Geithner also said the rise in U.S. yields reflect €œan improvement in confidence€ whereas many traders believe the run-up in yields reflects a worsening of the U.S. fiscal outlook.
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