UPDATE 1-Japan’s foreign reserves rise after intervention

 * Japan's Y692.5 bln intervention lifts forex reserves
 * Rise in euro vs dollar lifts value of euro-denominated
assets
 * Japan to seek continued G7 cooperation after joint
intervention

 (For more stories on the Japanese economy click [ID:nECONJP])	
 By Kaori Kaneko	
 TOKYO, April 7 (Reuters) - Japan's foreign reserves rose in
March after it intervened in the currency market to stem a sharp
rise in the yen after the earthquake and tsunami, pulling the
currency away from a record peak against the dollar.	
 The reserves rose to $1.12 trillion at the end of March
compared to $1.09 trillion at the end of February, the Ministry
of Finance said on Thursday.	
 Japan used a total of 692.5 billion yen ($8.1 billion) in
foreign exchange intervention in March, when Group of Seven (G7)
countries joined it in their first joint intervention in more
than a decade after the yen shot to a record 76.25 yen to
the dollar. [ID:nL3E7EV1T3]	
 The yen has extended its losses since the rare coordinated
intervention and market players say the broader trend points to
a continuation of yen weakness given growing expectations that
the Bank of Japan will lag central banks in the euro zone and
the United States in raising interest rates.	
 On Thursday the yen fetched around 85.40 yen to the dollar,
near a six-month low, and 122.30 yen to the euro , near
an 11-month low. 	
 "There has been a clear difference in direction among major
central banks' interest rates. The possibility of more joint G7
intervention has greatly declined, given the yen's weakness on
interest rate differentials," said Hideki Hayashi, a global
economist at Mizuho Securities.	
 "Since the G7 members have stuck to their stance of
cooperating if needed, I wouldn't rule out more intervention if
the yen rises sharply. But the possibility is small considering
the market situation at the moment." 	
 Japan plans to seek continued cooperation from the G7
countries at a meeting next week when the group's finance chiefs
meet in Washington. G7 sources told Reuters this week that the
economic impact of Japan's triple disaster of earthquake,
tsunami and nuclear crisis will be high on their agenda.	
[ID:nN04252436]	
 Tokyo had last intervened in the currency market on its own
on Sept. 15, 2010, when it used 2.13 trillion yen, a record
amount for a single day.	
 Announcing the latest figures for Japan's reserves, the
ministry said gains in the euro against the dollar contributed
to pushing up the dollar-based value of euro-denominated assets.	
 The euro was at $1.4158 at the end of March, compared
with $1.3806 at the end of February.
($1 = 85.475 Japanese Yen)	
	
 (Editing by Michael Watson)	
 

UPDATE 1-Japan’s foreign reserves rise after intervention