The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥94.55 level and was supported around the ¥93.85 level. The yen was otherwise stronger across the board as risk appetite weakened on ongoing concerns that some asset prices are overvalued. The big news in the market today was a report that China may move to curb some industrial overcapacity in industries such as steel and cement that has been precipitated by this year's record credit expansion. Any indication that China may seem to reduce economic growth and contain its liberal credit policies could result in yen appreciation on the premise that the resulting impact on global growth will slow. All eyes will watch this weekend's general election in Japan with the Democratic Party of Japan poised to dislodge the Aso government and long-incumbent Liberal Democratic Party from power. The Nikkei 225 stock index climbed 1.36% to close at ¥10,639.71. U.S. dollar offers are cited around the ¥104.15 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥133.90 level and was capped around the ¥135.10 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥152.20 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥87.95 level. In Chinese news, the U.S. dollar lost ground vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8266 in the over-the-counter market, down from CNY 6.8267. Chinese Premier Wen this week said the markets need to avoid being blindly optimistic about the global economic recovery and added China must maintain its moderately loose monetary policy and active fiscal policy. PBoC has reported it will ensure reasonable and ample liquidity.