Dollar extends rebound from 14-yr low vs yen

LONDON Nov 27 (Reuters) - The dollar extended its rebound against the yen on Friday as traders covered large short positions built up earlier in the day on concerns over Dubai's debt problems that had dragged the dollar down to a 14-year low.

Traders said the speed and scale of the fall was such that a recovery was always on the cards, particularly after Japan's Finance Minister Hirohisa Fujii said the moves were "extreme" and it was possible Japan could respond.

"A lot happened too quickly, and the strong and immediate rhetoric have obviously been enough warning," said a trader at a Japanese bank in London.

By 1025 GMT, the dollar was back up at 86.80 yen JPY=, up around two yen from the 14-year low of 84.82 yen struck in the Asian session, and up 0.4 percent on the day.

((Reporting by Jamie McGeever; Reuters Messaging: jamie.mcgeever.reuters.com@reuters.net; +44 207 542 8510))