The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥93.10 level and was capped around the ¥93.80 level. Bank of Japan Governor Shirakawa met Prime Minister Hatoyama today in the first of a series of quarterly meetings where the central bank will likely be pressured by the government to enact new easing measures. Shirakawa reported the central bank's monthly purchase of ¥1.8 trillion in Japanese government bonds was not discussed during the meeting. Hatoyama reported both the government and central bank will take measures to counter deflation. Bank of Japan this week maintained its assessment of the economy, reporting Japan's economy has been picking up mainly due to improvement in overseas economic conditions and to various policy measures. BoJ reiterated the economy still lacks momentum to support a self-sustained recovery in domestic private demand. The central bank also reported corporate sentiment is improving, capital spending is leveling out, and the deceleration in consumer prices will moderate. Data released in Japan yesterday saw the February current account total print at ¥1.47 trillion while February machine orders were off 5.4% m/m and 7.1% y/y. Also, March bankruptcies were off 14.5% y/y and March machine tool orders were up 262.1% y/y. Additionally, the March economy watchers' survey improved at the both the current and outlook levels. The Nikkei 225 stock index climbed 0.32% to close at ¥11,204.34. U.S. dollar offers are cited around the ¥96.85 level. The euro moved higher vis-à-vis the yen as the single currency tested offers around the ¥125.80 level and was supported around the ¥124.65 level. The British pound moved higher vis-à-vis the yen as sterling tested offers around the ¥144.30 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥87.70 level. In Chinese news, the U.S. dollar depreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8236 in the over-the-counter market, down from CNY 6.8243. The government plans to sell about CNY 200 billion of bonds on behalf of local governments this quarter. The move higher in the yuan was expected by most dealers as simmering tensions between the U.S. and China have thawed a little bit in the run-up to next week's meeting in Washington, D.C. between leadership from the two countries. Treasury Secretary Geithner met with Chinese leadership in Beijing yesterday to stress the importance of bilateral relations. People's Bank of China sold about CNY 15 billion in three-year bills this week, its first sale since June 2008 and the central bank's latest attempt to drain liquidity and manage money supply growth. There is a growing sense that China is close to announcing an important shift in its currency policy, possibly including a further liberalization of the yuan's exchange rate.