* Yen lurks below 15-yr high vs dollar, Japan action in focus
* Japan govt to urge BOJ to ease monetary policy - media
* Speculators trim yen bets on intervention caution
* Dollar under pressure after weak goods orders, housing data
By Rika Otsuka
TOKYO, Aug 26 (Reuters) - The yen slipped further from a
15-year high against the dollar on Thursday as investors waited
to see if Japanese authorities would go beyond just trying to
talk down the currency.
The greenback was under pressure after U.S. data on Wednesday
heightened fears the world's biggest economy is at risk of
another downturn. New home sales slumped to their slowest pace on
record in July and durable goods orders were weaker than
expected. []
The dollar index, a gauge of the greenback's performance
against a basket of six major currencies, edged down 0.3 percent
to 82.98 <.DXY>. Support is seen at the Aug. 24 low of 82.86 and
the 82.00 level, while resistance stands at 83.556, a six-week
high hit on Tuesday.
The euro further recovered from a nine-year low against the
yen after data on Wednesday showed business morale in Germany
improved to its highest in more than three years in August,
offsetting concerns about fiscally weak euro zone countries.
[]
News that Bank of Japan Governor Masaaki Shirakawa will
attend the Kansas City Federal Reserve conference in Jackson
Hole, Wyoming, this week was making some players hesitant to push
the yen higher. []
"Investors are cautiously watching whether Japanese
authorities will do something," said Hideki Amikura, deputy
general manager of the forex section at Nomura Trust and Banking.
"Shirakawa is likely to speak to (Federal Reserve Chairman
Ben) Bernanke and other central bankers in Jackson Hole, and that
is prompting market players to speculate about possible Japanese
action."
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PDF on Japan's yen puzzle: http://r.reuters.com/gug27n
Q+A-Will Japan intervene to curb yen's rise? []
BOJ FOCUS on chance of monetary easing []
Why the yen may remain strong []
Reuters Insider show on the yen http://link.reuters.com/wun96n
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The Japanese government will urge the BOJ to ease monetary
policy further to ease the pain in the economy from a strong yen
in an economic stimulus package now being worked out, the Asahi
newspaper said on Thursday. []
The dollar was up 0.25 percent from late U.S. trade at 84.77
yen <JPY=> after climbing as high as 84.89 yen earlier in the
day. The greenback posted a 15-year trough of 83.58 yen on
trading platform EBS on Tuesday.
The euro climbed 0.7 percent on the day to 107.71 yen
<EURJPY=R> helped by bargain-hunting from Japanese investors. The
single currency plunged as low as 105.44 yen on Tuesday, its
lowest since 2001.
"Cross/yen has a strong correlation with global share prices
and as Asian shares are rising, it's hard to buy the yen today,"
said Ayako Sera, market strategist at Sumitomo Trust and Banking
Corp.
COULD EXPORTER YEN DEMAND OFFSET JAPAN ACTION?
Traders said rises in dollar/yen and cross/yen were also led
by speculators' short-covering due to caution about possible
Japanese intervention, while many investors stayed on the
sidelines.
The head of Suzuki Motor Corp <7269.T> urged the government
to act to safeguard the economy, saying that the company is at
the limit of what it can do to counter the strong yen from
sapping profits. []
Talk has been growing that Japan may intervene to stem the
yen's rise for the first time since March 2004 as the currency
nears an all-time high of 79.75 yen to the dollar hit in 1995,
pushing Tokyo's benchmark Nikkei <> average down to 16-month
lows. []
Sellers of the greenback are believed to have set stops in
the 85.05-85.10 yen region, and if such orders are triggered it
could boost the dollar back to the 85.60-85.80 area.
Meanwhile, Japanese exporters, having missed the chance to
repatriate overseas profits before the recent spike in the yen,
are keenly watching for the right time to sell dollars and euros,
traders said.
"Talk in the market is that exporters have not been able to
bring themselves to sell foreign currencies at current levels,"
said Tsutomu Soma, senior manager of the foreign securities
department at Okasan Securities.
"But they are expected to sell the dollar when it rebounds
beyond 85.00 and 86.00 yen."
Guessing how badly exporters may need to sell foreign
currencies, some traders said exporter selling of dollars and
euros could offset Japanese authorities' efforts to weaken the
yen, even if Japan finally acts.
Against the greenback, the euro rose 0.3 percent to $1.2695
<EUR=>, having rebounded from a six-week low of $1.2588 hit
earlier this week.
(Additional contribution by Hideyuki Sano and Reuters analyst
Rick Lloyd in Singapore; Editing by Michael Watson and Chris
Gallagher)
