The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥97.00 figure and was supported around the Â¥96.15 level. The pair moved higher following the release of Bank of Japan€™s quarterly tankan survey that revealed business confidence among big Japanese manufacturers improved for the first time in 2 Â½ years. The headline diffusion index for large manufacturers climbed to -48 from a record low of -58 in March € the first improvement in the headline diffusion index since December 2006. These data could indicate the worst is over for the Japanese economy. Sentiment among large non-manufacturers improved to -29 from a reading of -31 in March. Despite the release of today€™s data, Bank of Japan is unlikely to change its monetary policy anytime soon. BoJ€™s current quantitative easing policies of outright purchases of commercial paper and corporate bonds and payment of interest on banks€™ excess reserves currently expire at the end of September. Finance minister Yosano reiterated Japan€™s labour market is the most important concern for officials now. The Nikkei 225 stock index lost 0.19% to close at Â¥9,939.93. U.S. dollar offers are cited around the Â¥104.15 level. The euro strengthened vis-Ã -vis the yen as the single currency tested offers around the Â¥136.90 level and was supported around the Â¥135.05 level. The British pound moved higher vis-Ã -vis the yen as sterling tested bids around the Â¥159.95 level while the Swiss franc moved higher vis-Ã -vis the yen and tested offers around the Â¥89.95 level. In Chinese news, the U.S. dollar moved higher vis-Ã -vis the Chinese yuan as the greenback closed at CNY 6.8331 in the over-the-counter market, up from CNY 6.8295. The official June Purchasing Managers€™ index improved to 53.2 from 53.1 in May, indicating expansion.
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