The yen depreciated vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥90.90 level and was supported around the ¥88.95 level. As expected, Bank of Japan's Policy Board kept the unsecured overnight call rate unchanged at 0.1%. The central bank reemphasized its commitment to stopping Japan's deflationary pressures through policy actions. Some traders believe the central bank will eventually move to increase its rinban operations in which it outright purchases Japanese government bonds. The yen was given across the board on rampant speculation the central bank will take actions because it does not tolerate a year-on-year rate of change in the consumer price index equal to or below zero per cent. Aggressive action by the central bank - favoured by some in the Hatoyama administration - could lead to a weaker yen. The BoJ also indicated the economic improvement is likely to be moderate until 2010. The Nikkei 225 stock index lost 0.21% to close at ¥10,142.05. 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 bids around the ¥130.00 figure and was supported around the ¥127.30 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥146.55 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥86.90 level. In Chinese news, the U.S. dollar depreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8330 in the over-the-counter market, down from CNY 6.8335. China reported it attracted US$ 7 billion in foreign direct investment in November. A People's Bank of China household inflation survey reported many believe prices are escalating too quickly during the economic recovery. The State Administration of Foreign Exchange reiterated it will manage foreign reserves for safety, liquidity, and return.