Reply #20: Yen recovers in advance of G7, market eyes Fed

[Ghost Dog]

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070131:MTFH17155_2007-01-31_12-47-03_L31716637&type=comktNews&rpc=44

LONDON, Jan 31 (Reuters) - The yen steadied above this week's four-year low against the dollar and rose versus the euro on Wednesday on growing expectations the Group of Seven finance ministers meeting next week might raise concerns about the Japanese currency's weakness.

Investors were reluctant to build sizeable positions ahead of the Federal Reserve's policy decision and a statement due later in the day. The Fed is set to hold rates on hold at 5.25 percent but the statement might reflect recent strong U.S. data.

Speculation on the yen intensified after the German finance minister, who will chair the G7 talks, said on Tuesday that Europe's concerns about yen weakness will be raised at next week's meeting.

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