The yen appreciated vis-à-vis the U.S. dollar today as the greenback tested bids around the ¥92.55 level and was capped around the ¥93.40 level. The ruling Democratic Party of Japan released a draft document wherein policymakers defended the need for a weaker yen. The document suggested the ¥120 level would be convenient and called for drastic monetary easing, adding the government and Bank of Japan should target an inflation level over 2.0%. Data released in Japan today saw the March domestic corporate goods price index rise 0.2% m/m and decline 1.3% y/y, both lower than expected. Also, March Tokyo-area condominium sales were up 54.2%. BoJ Governor Shirakawa reported We're starting to see more positive signs than negative signs including slight improvements in wages and commodities prices. He added the economy is picking up and said declines in consumer prices are moderating. Many dealers expect BoJ to raise their price forecasts when its Policy Board convenes again later this month. The Nikkei 225 stock index lost 0.81% to close at ¥11,161.23. U.S. dollar offers are cited around the ¥96.85 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥125.70 level and was capped around the ¥127.05 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥142.05 level while the Swiss franc moved higher vis-à-vis the yen and tested offers around the ¥88.30 level. In Chinese news, the U.S. dollar depreciated vis-à-vis the Chinese yuan as the greenback closed at CNY 6.8256 in the over-the-counter market, down from CNY 6.8257. Speculation is increasing that China will float its currency or announce a significant revaluation by the end of the quarter, possibly a widening of the USD/CNY band by about 3%. President Obama met with President Hu last night and the two discussed trade relations and a more market-oriented yuan exchange rate. Some economists are predicting China's economy expanded an annualized 11.7% in the first quarter. Many data will be released in China tomorrow including Q1 GDP, March PPI, March CPI, March retail sales, and March industrial production.