The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥89.75 level and was capped around the ¥90.55 level.  Traders continued to lift the yen following the Obama administration's decision to try and limit the size of U.S. banks and drastically curtail some of their profitable business activities.  Finance minister Kan said it would be going too far if the government asked the Bank of Japan to implement specific monetary policy measures.  Finance minister Kan yesterday reported the Chinese yuan may be discussed at the upcoming Group of Seven meeting and said any such discussion could have a significant impact on Japan.  Canadian finance minister Flaherty said Kan has been clear about his desire to discuss the yuan at the meeting in Canada, contrary to what Kan has said.  Data released in Japan today saw November all industry activity climb +0.1% m/m, down from October's +1.1% gain.  Some BoJ-watchers, including Bank of Tokyo-Mitsubishi, said the central bank may adopt measures to weaken the yen following renewed risk aversion and the chance of a deflationary shock. BoJ Governor Shirakawa said it is critical that the central bank helps to put the nation's economy back onto a sustainable growth path. The Nikkei 225 stock index lost 2.56% to close at ¥10,590.55.  U.S. dollar offers are cited around the ¥94.75 level.  The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥126.50 level and was capped around the ¥128.20 level.  The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥144.65 level while the Swiss franc moved lower vis-à-vis the yen and tested bids around the ¥86.20 level. In Chinese news, the U.S. dollar appreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8268 in the over-the-counter market, down from CNY 6.8269.  Data released in China this week saw inflation accelerate 1.9% in December with gross domestic product climbing to 10.7% and this renders it likely People's Bank of China will tighten monetary policy this year.  PBoC Governor Zhou reaffirmed the central bank's moderately loose policy and noted the need to control inflation.