(Corrects headline to "resumes slide")
* Yen falls after short-lived rebound
* BoE's King and Russian official's comments lifts
* Investors likely to be wary ahead of G20 meeting
* BOJ policy meeting ends on Thursday
By Anooja Debnath
LONDON, Feb 13 The yen fell on Wednesday, giving
up earlier gains as investors shrugged off comments by a Group
of Seven official the previous day, citing concerns about the
yen's excessive weakness.
Yen sellers were encouraged by comments from Russian Deputy
Finance Minister Sergei Storchak, who said the yen had
definitely been overvalued and that "there are no signs"
Japan's monetary authorities were intervening.
The euro rose 0.3 percent to 126.10 yen, edging
towards the 34-month high of 127.71 hit last week.
The dollar was up flat on the day at 93.48 yen. U.S.
investors were cited as the main buyers of the pair. It hit a
near three-year high of 94.465 yen on Monday.
In their statement on Tuesday, G7 finance chiefs reaffirmed
that fiscal and monetary policies would not be directed at
But the yen leapt in volatile trade after a G7 official
later said the G7 statement was in fact meant to signal worries
about excessive moves in the yen.
By Wednesday, investors were more confident the G7 statement
was not meant to warn about recent yen weakness. That sentiment
was reinforced by comments from Bank of England Governor Mervyn
King, who said the statement designed to cool international
currency tensions should be taken at face value.
"To me the statement says -- as long as price action is
smooth (G7 officials) are not going to do anything. So I stand
by my point that we are going to have more yen weakness in the
medium-term," ," said Vasileios Gkionakis, head of global FX
strategy at UniCredit in London.
He said Unicredit would maintain its long euro/yen position
and target 130.00 yen in three to six months.
Some strategists said investors may still be wary of selling
the yen before a G20 meeting in Moscow on Friday and Saturday.
If policymakers caution against the pace of the yen's recent
falls, the Japanese currency could rebound.
"The yen crosses will come lower ahead of the weekend,
mostly because it's an excuse to take profit, given how far we
have come," said Geoff Kendrick, FX strategist at Nomura,
referring to the euro's 10 percent gain versus the yen in 2013.
The yen lost nearly 20 percent against the dollar between
November and early February, picking up speed as Japan's new
government put pressure on the Bank of Japan to ease monetary
policy more aggressively to defeat deflation.
Markets were also likely to tread cautiously until the
outcome of a BOJ meeting ending on Thursday, although many
expect the bank to hold off from any fresh easing measures until
a new governor takes the helm.
EURO RISES VS DOLLAR
The euro rose 0.3 percent to $1.3490, with traders
citing demand from Middle East buyers earlier in the day.
Some strategists said the euro would be largely sidelined
before the G20 meeting, although it could come under pressure if
euro zone gross domestic product data on Friday shows the
The euro has retreated from a 15-month high of $1.3711 hit
at the start of February. It extended losses last week when
European Central Bank President Mario Draghi warned of downside
risks to the euro zone growth outlook.
The single currency fell 1 percent on the day to a 4-1/2
month low versus the Swedish crown of 8.4655 crowns.
The crown rose after the Riksbank left rates on hold,
wrongfooting some investors who had positioned for a cut, and
central bank governor Stefan Ingves said the strength of the
currency was not a problem.
(Additional reporting by Nia Williams, editing by Nigel