Reply #14: asia: Japan closely watching forex after yen regains steam [View All]

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http://www.reuters.com/article/2011/05/06/businesspro-us-japan-economy-noda-idUSTRE74510W20110506

(Reuters) - Japan warned on Friday it was closely watching currency markets but stopped short of using stronger language threatening action, a sign the yen's rise to a seven-week high has not alarmed policymakers enough to consider intervening in the market.

Despite the yen's brief rise near levels hit just before the G7 currency intervention on March 18, many analysts suspect intervention by Japanese authorities, let alone joint G7 action, is less likely now with the yen's ascent more moderate than back then, when the dollar tumbled 3 yen in a single day.

Finance Minister Yoshihiko Noda said on Friday he will closely watch movements in foreign exchange and financial commodity markets.

When asked whether Tokyo will discuss the yen's sharp rise with G7 counterparts, he would not comment directly and said: "At this point we will carefully watch (market moves)."