The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥91.65 level and was supported around the ¥90.80 level. Bank of Japan's Policy Board is expected to keep its overnight call rate target unchanged this week and keep its emergency lending programs intact. BoJ's quarterly tankan survey will be released on 1 October and could provide the central bank with some near-term direction on monetary policy. Deflation remains a sizable threat in the Japanese economy with consumer prices having fallen 2.2% in July. Finance minister Yosano verbally intervened against the yen's recent appreciation, noting sudden currency moves are unwelcome. Data released in Japan overnight saw August final machine tool orders off 71.5% y/y. There is some speculation in the Japanese media that Bank of Japan will adopt a more positive assessment of the Japanese economy this week but it is not known if the assessment will be an upgrade. The Nikkei 225 stock index climbed 0.15% to close at ¥10,217.62. U.S. dollar offers are cited around the ¥94.75 level. The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥133.70 level and was supported around the ¥132.75 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥149.45 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥88.15 level. In Chinese news, the U.S. dollar gained ground vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8225 in the over-the-counter market, up from CNY 6.8224. The Obama administration yesterday announced tariffs on Chinese tires and other goods while China announced it is launching an anti-dumping investigation into U.S. chicken and auto products. Most economists do not believe a trade war will ensue.