Yen eases after Japan warns of action

Tokyo - The yen eased Monday from a new record high, after Japan's finance minister again warned he could take action to stem the currency's strength.

The dollar stood at ¥76.31, regaining some of the ground it had lost with its drop to ¥75.78 during New York trade on Friday.

Japanese Finance Minister Jun Azumi told local press early on Monday that he could take "decisive steps" to tame the currency's rapid rise.

He called the yen's advance to the new record "unfortunate," because it came from "speculative moves" and "does not reflect the real economy."

Tokyo dealers said the market was not likely to push the dollar to another all-time low in Asian trade due to fears over possible Japanese intervention.

Global investors have bought the yen, considered a safe haven, and dumped the dollar and the euro amid economic uncertainty in the US and Europe.

A strong yen hurts Japan's exporters by making their products relatively more expensive overseas and by reducing their overseas earnings when repatriated.

But Barclays Capital chief strategist Masafumi Yamamoto said the probability of a currency market intervention from Japan was low as long as European and US shares stayed firm.

"You can expect the yen will weaken by itself as long as share prices are firm," he told Dow Jones Newswires.

But he said investors were wary about a possible intervention or monetary easing by the Bank of Japan.

Meanwhile, the euro bought $1.3854 and ¥105.73, compared with $1.3896 and ¥105.89 in New York on Friday.

The single currency was likely to remain largely quiet ahead of another round of meetings of European leaders on Wednesday, Yamamoto said.

The euro would likely fall if the meeting fails to agree on a sound, detailed plan to address debt woes, he added.