UPDATE 3-Japan says to act vs yen rise if needed after G20

* Noda says to cooperate with US, Europe on FX as appropriate

* Noda repeats watching forex moves with great interest

* Japan intervention still possible but not now -Analyst

* Nissan executive talks of sense of crisis over yen strength
(Updates with Nissan comment, markets)

By Rie Ishiguro and Tetsushi Kajimoto

TOKYO, Oct 26 (BestGrowthStock) – Japan’s finance minister warned on
Tuesday the government would “act decisively” in markets if
needed and expressed Tokyo’s irritation with the yen’s climb to
another 15-year high following the Group of 20 finance chiefs’
meeting.

Yoshihiko Noda called Monday’s currency moves “one-sided” and
said he was watching the market with “great interest” — a
language similar to one Tokyo had used in the build-up to last
month’s intervention. However, he also said market conditions
were not the same as in September.

“When we intervened in September the yen was rising on its
own. Since then various currencies, not just the yen, have been
rising against the dollar,” he told parliament.[ID:nTOE69P01V]

Investors took the G20’s weekend pact to shun competitive
devaluations as a green light to resume selling the dollar,
fuelled by expectations that the Federal Reserve will pump more
money into the sputtering U.S. economy.

That pushed the dollar to a new 15-year low (JPY=: ) at 80.41
yen on Monday, not far off its all-time low of 79.75 and below
levels at which Japan intervened by selling yen in mid-September.

The dollar was trading at around 80.65 yen on Tuesday, well
below levels Japanese exporters’ had factored into their earnings
forecasts and policymakers fear the yen’s continued rise may
stunt the economy’s recovery from the global downturn. [FRX/]

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PDF Report on G20 uneasy truce: http://r.reuters.com/nan99p

For more stories on the Japanese economy [ID:nECONJP])

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A day after Japanese media reported that the yen’s strength
would cut Toyota’s (7203.T: ) operating profit by more than $1.8
billion, a top executive at Nissan Motor Co (7201.T: ) talked about
a “huge sense of crisis” caused by the currency. [ID:nTOE69P01F]
[ID:nTKZ006604]

While some analysts believe the G20’s commitment to
market-determined exchange rates would make it harder for Japan
to intervene again, others said the language of the G20 was too
general to act as a deterrent.

“The market generally took the G20 statement as “no surprise”
so it did not reverse the tide of weak dollar due to expectation
for the Federal Reserves’ quantitative easing next month,” said
Masafumi Yamamoto, chief Japan currency strategist at Barclays
Capital.

“But it did not rule out the possibility of intervention
either,” Yamamoto said, referring to a G20 declaration that
economies with reserve currencies will be vigilant against excess
volatility and disorderly movement in exchange rates.

In fact, Noda highlighted that part of the weekend meeting’s
message: “When there are excessive and disorderly currency moves,
Japan will cooperate accordingly with other countries,” he told
parliament.

“While there are various ways of cooperation, G20 nations
have shifted from merely recognising the harm of excessive and
disorderly moves to acknowledging the need to act against (market
moves) that could have adverse effects.”

Barclays’ Yamamoto and other analysts say, however, Japan
will probably choose to wait for the outcome of Fed’s Nov. 2-3
meeting, before taking any action on currencies.
(Additional reporting by Leika Kihara; Editing by Tomasz
Janowski)

UPDATE 3-Japan says to act vs yen rise if needed after G20