The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥88.45 level and was supported around the ¥87.35 level. Traders continued to unwind long yen positions on the premise that Japanese monetary authorities could conduct yen-selling intervention to prevent further yen appreciation. Bank of Japan this week announced a plan to offer three-month loans to commercial banks at 0.1%, a ¥10 trillion program designed to counter deflationary pressures and reverse the yen's strength. Data released in Japan today confirmed corporate capital spending was off 24.8% y/y in the July-September quarter, lower than the 21.7% decline in the April-June quarter. BoJ Governor Shirakawa and Prime Minister Hatoyama met yesterday and the markets are viewing the meeting as a positive. Some private forecasters are indicated the dollar could fall to the ¥75 level by 2011. Bank of Japan Policy Board member Suda verbally intervened yesterday, indicating the yen's rise may impact Japan's economic growth. Suda also indicated no policy options were being ruled out, a signal that policymakers are not content with recent yen movements. The Nikkei 225 stock index gained 3.83% to close at ¥9,977.67. 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 ¥133.55 level and was supported around the ¥131.40 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥146.85 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥88.55 level. In Chinese news, the U.S. dollar appreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8280 in the over-the-counter market, up from CNY 6.8233. Chinese Commerce Minister reported The focus of global attention shouldn't be on the yuan's exchange rate, but the dollar's stability.