The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the Â¥95.35 level and was supported around the Â¥94.60 level. The yen was off sharply across the board as global risk sentiment continued to strengthen. Another indication of the improving risk appetite was a decline in the so-called TED spread, the difference between what financial institutions and the U.S. Treasury pay to borrow funds for three months, to 29.4 basis points € its lowest level since 26 March 2007. The opposition political party, Democratic Party of Japan, reported €œJapan cannot adopt political that would prompt a drastic drop of the dollar or make other changes during a global recession.€ The DPJ is mounting a serious challenge to the Liberal Democratic Party€™s decades-long stronghold on power and may overtake the LDP at the polls later this month. Data released in Japan overnight saw total cash earnings off 7.1% y/y in the year to 30 June, the largest decline on record and the latest indication of deflationary pressures in the Japanese economy. The Nikkei 225 stock index lost 0.04% to close at Â¥10,352.47. 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¥137.55 level and was supported around the Â¥134.55 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the Â¥161.80 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the Â¥90.10 level. In Chinese news, the U.S. dollar lost ground vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8288 in the over-the-counter market, down from CNY 6.8291. China reported its CLSA PMI figure improved to a twelve-month high.