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Bonds News

UPDATE 1-Japan Noda: FX moves one-sided after Fed statement

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

* Dollar dips vs yen after Fed moves toward more easing

* Japan finmin warns against rapid, disorderly FX moves (Adds details)

TOKYO, Aug 11 (Reuters) - Japanese Finance Minister Yoshihiko Noda said on Wednesday that moves in the currency market were a little one-sided after the Federal Reserve announced new policy moves, pushing the dollar back toward a 15-year low against the yen.

The Federal Reserve on Tuesday took fresh steps to lower borrowing costs amid a softening economic recovery, announcing it would use proceeds from its maturing mortgage bonds to buy more government debt. [ID:nN09275781]

The dollar hovered within sight of a 15-year low versus the yen on Wednesday after the Fed's decision, dipping 0.2 percent from late U.S. trading on Tuesday to 85.32 yen JPY=.

The dollar hit an eight-month low of 85.02 yen on trading platform EBS last week.

“The FOMC made an announcement and after that the market moves have become a little one-sided,” Noda told reporters.

“In any case, excessive and disorderly moves in the currency market would negatively affect the stability of the economy and financial markets. Therefore, I am watching market moves with utmost attention,” he said.

Noda’s comments echoed his statements of concern last week about one-sided and disorderly market moves as the yen climbed against the dollar, threatening to harm Japan’s exporters and derail a feeble recovery from the global crisis.

The Bank of Japan on Tuesday held off on new policy steps to combat a stronger yen, however, saving its limited firepower in case the currency’s rise accelerates. [IDn:TOE67900S]

The Fed’s decision took investors by surprise, and analysts said it could herald more aggressive monetary policy easing if more signs of a slowing economic recovery emerge. (Reporting by Tetsushi Kajimoto; Editing by Edmund Klamann)

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