The yen appreciated vis-Ã -vis the U.S. dollar today as the greenback tested bids around the Â¥94.60 level and was capped around the Â¥95.40 level. The pair lost further ground as the U.S. dollar struggled against higher-yielding currencies. Yesterday, Japanese finance minister Yosano indicated he is not concerned about recent moves higher in long-term interest rates, characterizing them as €œmarginal.€ Economics minister Hayashi yesterday reported it is premature to know whether or not Japan has fallen back into deflation because core price declines are modest. Data released in Japan yesterday saw the July monetary base climb 6.1% y/y. Also, it was reported yesterday that Bank of Japan has purchased Â¥38.10 billion of equities from banks as of 31 July as part of its Â¥ 1 trillion quantitative easing program that will run through April 2010. The Nikkei 225 stock index lost 1.18% to close at Â¥10,252.53. U.S. dollar offers are cited around the Â¥104.15 level. The euro moved lower vis-Ã -vis the yen as the single currency tested bids around the Â¥136.20 level and was capped around the Â¥137.60 level. The British pound moved higher vis-Ã -vis the yen as sterling tested offers around the Â¥162.45 level while the Swiss franc moved lower vis-Ã -vis the yen and tested bids around the Â¥89.05 level. In Chinese news, the U.S. dollar lost ground vis-Ã -vis the Chinese yuan as the greenback closed at CNY 6.8279 in the over-the-counter market, down from CNY 6.8315.
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