The yen depreciated vis-Ã -vis the U.S. dollar today as the greenback tested offers around the Â¥94.55 level and was supported around the Â¥93.85 level. Bank of Japan Policy Board member Mizuno warned the domestic economic recovery could decelerate in the autumn, adding a sustained economic recovery would require €œsupport from governments and central banks.€ He said the BoJ should prepare Japan for an extended bout with deflation, warning that €œprice declines will ease only at a moderate pace€ in the year starting April 2011. He also warned the central banks lacks the tools needed to €œprop up prices and stimulate economic growth in the short term.€ The yen€™s direction is uncertain given the real possibility that economic growth may slow further. On the political front, a Democratic Party of Japan victory at the general election on 30 August could result in upward pressure on the yen and possibly more supply of Japanese government bonds. The Nikkei 225 stock index climbed 1.76% to close at Â¥10,383.41. U.S. dollar offers are cited around the Â¥104.15 level. The euro moved higher vis-Ã -vis the yen as the single currency tested offers around the Â¥134.60 level and was supported around the Â¥133.40 level. The British pound moved higher vis-Ã -vis the yen as sterling tested offers around the Â¥156.70 level while the Swiss franc moved higher vis-Ã -vis the yen and tested offers around the Â¥88.65 level. In Chinese news, the U.S. dollar lost ground vis-Ã -vis the Chinese yuan as the greenback closed at CNY 6.8273 in the over-the-counter market, down from CNY 6.8320.
Join the Discussion