The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the Â¥95.05 level and was supported around the Â¥94.25 level. The yen was mixed across the board as risk appetite improved somewhat, encouraging some to chase higher-yielding assets. A greater resumption of risk appetite could result in more demand for short yen carry trades in which the yen is used as a financing vehicle to invest in assets with greater yield spreads. Vice finance minister Tango reported Japan needs to limit Japanese government bond sales as much as possible. Tango€™s comments are topical because the Liberal Democratic Party of Japan may lose this weekend€™s general election with the Aso government conceding the LDP€™s stronghold on power to the rival Democratic Party of Japan. DPJ leader Hatoyama was on the tape earlier saying the DPJ does not plan to increase JGB issuance, contrary to public chatter that the liberal DPJ will expand public works projects. Bank of Japan Governor Shirakawa spoke at the Fed€™s Jackson Hole symposium this weekend and said monetary policy €œshould avoid inflating asset bubbles by keeping interest rates low for too long.€ The Nikkei 225 stock index climbed 3.35% to close at Â¥10,581.05. U.S. dollar offers are cited around the Â¥104.15 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the Â¥135.00 figure and was capped around the Â¥136.05 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the Â¥154.80 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the Â¥88.90 level. In Chinese news, the U.S. dollar lost ground vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8267 in the over-the-counter market, down from CNY 6.8269. Chinese Premier Wen said the markets need to avoid being €œblindly optimistic€ about the global economic recovery and added China must maintain its €œmoderately loose€ monetary policy and €œactive€ fiscal policy.