The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥96.50 level and was supported around the Â¥95.30 level. Prime Minister Aso reported Bank of Japan€™s monetary policy is not as effective during a recession where there are deflationary pressures evident. Finance minister Yosano said one cannot assume bond yields will remain this low, especially when drafting the budget for the next fiscal year. Yosano added the budget ceiling for the next fiscal year will be a record Â¥52.7 trillion and said the impact of fiscal and monetary stimuli on the Japanese economy are not fully known. Additionally, Yosano said the government is significantly concerned about unemployment. It was reported overnight that the May unemployment rate ticked up to 5.2% from 5.0% in April while May household spending were up +0.3% m/m and off 1.3% y/y. Moreover, May overall housing starts were down a drastic 30.8% y/y and total May construction orders were off a staggering 41.9% y/y to Â¥454.8 billion. The Nikkei 225 stock index climbed 1.79% to close at Â¥9,958.44. U.S. dollar offers are cited around the Â¥104.15 level. The euro weakened vis-Ã -vis the yen as the single currency tested bids around the Â¥134.35 level and was capped the Â¥135.95 level. The British pound moved higher vis-Ã -vis the yen as sterling tested bids around the Â¥158.20 level while the Swiss franc moved lower vis-Ã -vis the yen and tested bids around the Â¥88.10 level. In Chinese news, the U.S. dollar moved lower vis-Ã -vis the Chinese yuan as the greenback closed at CNY 6.8295 in the over-the-counter market, down from CNY 6.8325.
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