The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the Â¥97.25 level and was capped around the Â¥98.55 level. Bank of Japan reported that paying 0.1% interest on excessive reserves held by financial institutions may distort the proper functioning of the market. The central bank€™s overnight call rate currently stands at 0.10% and the central bank wants to make sure banks are incentivized to not horde liquidity. Data released in Japan overnight saw the April leading index improve dramatically to 55.0 from 25.0 in March while the composite index improved to 76.5 from 75.5 in March. The Nikkei 225 stock index lost 0.80% to close at Â¥9,786.82. U.S. dollar offers are cited around the Â¥104.15 level. The euro moved higher vis-à-vis the yen as the single currency tested offers around the Â¥137.35 level and was supported around the Â¥135.70 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the Â¥159.15 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the Â¥90.45 level. In Chinese news, the U.S. dollar weakened vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8344 in the over-the-counter market, down from CNY 6.8363.