UPDATE 1-Japan's Yosano: FX action as big as Y1-2 trln hard-Jiji


* Governor of Aichi, home to Toyota, urges forex action -media

* Aichi governor meets Yosano, Edano

* Finance Minister Noda repeats verbal warning on yen rise (Adds details)

By Leika Kihara

TOKYO, July 28 (Reuters) - Japanese Economics Minister Kaoru Yosano, under pressure to curb the yen's latest spike in value, said currency intervention as big as 1 to 2 trillion yen ($13-26 billion) would be quite difficult, Jiji news agency reported on Thursday.

Japan is faced with the prospect of acting alone to hold down its currency, with markets seeing little chance of a repeat of the Group of Seven's coordinated action to hold down the yen in the aftermath of the March 11 earthquake.

Last time Japan intervened alone, in September last year, it spent around 2 trillion yen.

Yosano's comment was made to Aichi governor Hideaki Omura, whose prefecture is home to Toyota motor Corp , Jiji reported.

Yosano told him the focus for Japanese policy-makers is the Aug. 2 deadline for the United States to raise its debt ceiling, Jiji said.

Omura also met Chief Cabinet Secretary Yukio Edano and requested the government to take urgent action against rapid yen rises, Kyodo news agency said.

Edano replied that the government will give his request serious consideration, Kyodo cited Omura as saying.

Noda has tried to keep markets on alert for the possibility of intervention with verbal warnings against the yen being pushed higher.

"I will continue to pay attention to markets," Noda told reporters on Thursday.

The yen has scaled four-month highs against the dollar on market fears of a U.S. government debt downgrade, prompting warnings by Japanese officials and business leaders that an unchecked rise in the yen was hurting the export-reliant economy.

Omura's request follows calls on Monday by Keidanren, Japan's biggest business lobby, for further joint intervention by the G7 to stem the yen's rise.

Japanese policymakers, alarmed at the yen's persistent rise, instead increasingly see solo action as an option, although markets are sceptical of what lasting effect any such a move would have on the yen.

The dollar hit another four-month low against the yen on Wednesday, sliding toward a record low of 76.25 hit in March. It stood around 77.85 yen on Thursday. ($1 = 77.965 Japanese Yen) (Additional reporting by Tetsushi Kajimoto; Editing by Chris Gallagher and Michael Watson)



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