The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥92.35 level and was capped around the ¥92.80 level. The pair's range was tight ahead of the end of the Japanese fiscal year on Wednesday. Data released in Japan overnight saw February large retailers' sales increase to -4% from -5.7% in January while February overall retail trade was up 4.2% y/y. Data to be released in Japan overnight include February household spending, the February jobless rate, and February industrial production. Bank of Japan's Policy Board is likely to maintain a very accommodative monetary policy for several more business quarters. New Policy Board member last week Miyao reported Lowering interest rates even a little bit, or keeping interest rates at very low levels amid a recovery, may be able to provide more stimulus and help sustain economic growth...it is important for the central bank to maintain its accommodative policy stance and provide monetary support for companies and households...the economy has been picking up recently, but incomes and employment remain in a severe state, and there are various risks and uncertainties to the outlook. The three-month euroyen futures rate is trading around 0.439% with the December 2010 rate currently trading at 0.385%, evidencing a lower market bias on interest rates through the end of the year. Ten-year yields, however, are now at their highest level since 12 November 2009. The Nikkei 225 stock index lost 0.09% to close at ¥10,986.47. 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 ¥125.05 level and was supported around the ¥124.10 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥139.10 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥87.45 level. In Chinese news, the U.S. dollar depreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8264 in the over-the-counter market, down from CNY 6.8270. People's Bank of China added three economists to its Policy Committee, an indication that it may be giving more focus to how it will tighten monetary policy in the coming months. Traders are awaiting a report from the U.S. due on 15 April that may possibly label China as a currency manipulator. Some observers suggest a major trade war might develop if China is labeled a currency manipulator by the Obama administration. People's Bank of China advisor Fan Gang last week indicated the central bank may adopt a managed float of the yuan currency.