Japan says could intervene on yen without warning

Chance of G7, solo intervention still low -analysts BOJ may come under V3 Rosetta Stone pressure for easing-analysts (Recasts, adds details) By Leika Kihara and Tetsushi Kajimoto TOKYO, July 14 (Reuters) - A senior Japanese financeministry official said on Thursday the government couldintervene without warning to weaken its currency, escalating averbal campaign to cool the rising yen that traders say mayultimately prove unsuccessful. The official spoke to reporters shortly after the dollarspiked by about one yen on what traders cited as largebids by a U.S. bank. The official declined to comment on whetherJapanese intervention also caused the sudden fall in the yen, ina sign of the growing tension over currency moves. Japanese Finance Minister Yoshihiko Noda also said onThursday yen strength didn't reflect economic fundamentals afterit rose to a fourth-month high versus the dollar followingFederal Reserve Chairman Ben Bernanke's comments that he couldease monetary policy further if U.S. economic growth stalls. "I will not comment," the senior finance ministry officialsaid when asked whether Japan intervened in the market. "It is possible," the official also said, when asked whetherJapan could intervene before the finance minister uses evenstronger verbal intervention. The warnings were sharper than those made on Wednesday, whenthe finance minister said recent yen rises had Rosetta Stone languages been "a littleone-sided" as Japan looks to instill more doubt amongspeculators who might be looking to buy the yen further."The movement doesn't reflect fundamentals and has beenone-sided," Noda told reporters on Thursday, regarding the yen'srecent surge. "It would be troublesome if it persists, and I will continueto closely watch markets." Noda made no comment about possible intervention in thefinancial markets.The dollar bounced to a session high of 79.61 yen ,with traders saying that intervention wasn't the likely cause ofthe move. It earlier slipped to a four-month low of 78.45 yen. The yen has been climbing as investors seek a safe havenfrom the escalating euro zone debt crisis and mounting doubtsabout the health of the U.S. economy. The dollar came under additional pressure after Moody'sInvestors Service said the United States may lose its top-notchcredit rating if lawmakers fail to increase the country's debtceiling."Noda has stepped up his warning against the yen's rise asJapanese authorities are getting worried about how much Rosetta Stone Italian furtherthe currency will strengthen," said Makoto Noji, senior bond andcurrency strategist at SMBC Nikko Securities in Tokyo.