Japan solo FX intervention difficult - LDP's Ibuki

TOKYO, March 14 (Reuters) - It is difficult for Japan alone to intervene in the foreign exchange market to rein in the yen's advance against the dollar, the secretary general of Japan's ruling Liberal Democratic Party, Bunmei Ibuki, said on Friday.

LDP heavyweight Ibuki does not have a direct influence on Japan's currency policy, but he added that a rapid rise in the yen was undesirable.

The dollar hit a 12-year low below 100 yen on Thursday, and has tumbled 10 percent against the yen so far this year. FXNEWS [FRX/]

Asked about whether Japan might intervene in the markets, Ibuki told a news conference: "It is difficult for Japan alone to intervene considering current economic conditions and our currency policy."

The yen's rise has fuelled speculation about the chances of yen-selling intervention by Japanese authorities, who have a history of restraining the currency's strength to maintain the competitiveness of exporters.

But most analysts are playing down the likelihood of government intervention to stem the yen's rise for now.

Key economic ministers such as Finance Minister Fukushiro Nukaga, who is in charge of currency policy, and Economics Minister Hiroko Ota have said this week that recent currency moves reflect dollar weakness rather than yen strength.

At 0214 GMT, the dollar was trading around 100.60 yen.

"It is utterly impossible for the correlation between the Japanese and U.S. economies to fluctuate 10-15 percent" in a short time, Ibuki said, referring to the pace of the yen's recent rise.