LONDON, Nov. 27 (MNI) - Dollar-yen was able extend its recovery off fresh 14-year lows seen in Asia, after comments from various Japanese officials regarding potential for intervention prompted a sharp bounce off the early Y84.82 lows.

Markets remained sensitive to ongoing concerns over the Dubai debt situation, with thin liquidity exacerbating moves. European stocks were able to pare early losses, allowing euro-yen to hold 200 points off its overnight lows ahead of the US open as dollar-yen extended highs to Y86.82. Euro-dollar saw an early sell-off to session lows at $1.4830, moving back to $1.4920 mid-morning.

YEN SUMMARY: Opened in early Europe around Y85.91 and Y128.32

of the Dubai debt concerns, with equity markets taking a tumble, prompting sharp selling of the yen crosses at the Tokyo open. Margin houses were again the noted sellers and, while volumes were not as large as Thursday, a lack of liquidity exacerbated moves as dollar-yen shed 200 points down to a fresh 14-year low at Y84.82 and euro-yen dumped 300 points to Y126.95. Comments from Japanese Finmin Fujii, "watching currencies intently, constantly; will contact US and Europe on currencies if needed", prompted a sharp bounce back above Y86.00 as euro-yen also retraced a good portion of its early losses.

took a step back following overnight verbal threats from Japanese officials. Dollar-yen was able to fully retrace the overnight sell-off, moving on to an Y86.82 high mid-morning, while euro-yen retested the recovery high seen in Asia at Y129.37 as stocks also staged a bounce.

JAPAN: Reported comments from Japanese officials Friday, * FUJII: Finance Minister Hirohisa Fujii cited by wires saying he may contact the US and Europe to act on currencies, signaling his growing concern that the yen's rise to a 14-year high will hamper the economic recovery. "I will establish contact if necessary," Fujii told reporters in Tokyo today, when asked whether the government has raised the issue of taking action in currency markets. When asked if the G-7 will consider issuing a statement, Fujii was cited saying, "We will do what is necessary." * FURUKAWA: Comments from MOF Vice Minister - Speculative action behind forex moves, including yen - Watching forex moves carefully. - Will examine how government can respond to forex moves. - Need to take into account how sharp yen rise may affect exports.

JAPAN: Data released in Japan Friday, * Oct unemployment rate at 5.1% vs Sep 5.3% - Oct real household spending +1.6% y/y vs Sep +1.0% - Oct core CPI -2.2% y/y Sep -2.3% - National core CPI posts 8th straight y/y drop in Oct - Central Tokyo Nov core CPI -1.9% y/y; Oct rec -2.2% - Lower energy costs continue to lead Japan CPI y/y drops - Oct retail sales -0.9% y/y; Sep -1.3%, 14th drop in row * Capital flows for the week ended Nov. 21: MOF * Japanese investors: Sold net Y23.4 bln in foreign equities - Sold net Y190.7 bln in foreign bonds - Bought net Y72.5 bln in foreign money market instruments - Resulting in a net sale of Y141.6 bln. * Foreign investors: Sold net Y239.3 bln in Japanese equities - Sold net Y94.3 bln in Japanese bonds - Bought net Y934.2 bln in Japanese money market instruments - Resulting in a net purchase of Y600.6 bln.

EURO SUMMARY: Opened in early Europe around $1.4936

session highs at $1.5017 before reversing lower. Strong sales of yen crosses weighed heavily on euro-dollar, providing weight to take the rate through support at $1.4950. The move triggered stops taking the rate to initial lows of $1.4933. Sharp bounce in yen pairs relieved pressure on euro-dollar, allowing it to push back up to $1.5000. Risk aversion weighed on Asian equity markets with euro-dollar slowly pressured lower during the balance of the session to $1.4899.

pushed euro-dollar through the late Asian base, with slippage extending down to the $1.4830 area. Equity markets were able to bounce from early lows, with euro-dollar tracking the recovery, moving steadily higher to trade back around $1.4920 mid-morning.

US:Press pick-ups in the US Friday, * US PRESS: Consulting firm Accenture predicts that about 52% of American consumers plan to hit the stores on that day, up from 42% last year, offering a glimmer of hope for "Black Friday", the Washington Post reports. By Sunday, 134 million people are likely to have gone shopping, according to the National Retail Federation, a trade group, up nearly 5% over last year, the paper says. * US PRESS: The NY Times says New York based retailers have so far held back on hiring plans for the holiday season, waiting to see how the situation develops.

EUROZONE: Reported comments from eurozone officials Friday, * ECB NOWOTNY: Surplus liquidity in the financial system will be reduced automatically as outstanding refinancing operations from the ECB's non-standard policies expire, ECB Governing Council Member Ewald Nowotny said in a press interview published online Friday. Nowotny, on a panel of other interviewees queried by Die Presse, also expressed confidence that inflation was under control, at least in Austria, whose central bank he heads. * GERMANY: DIW; Germany Q4 GDP projected at +0.8% Q/Q - Development of Germany's economy still very unstable

EUROZONE: Data released in the eurozone Friday, * EMU: The eurozone economic sentiment index has improved for the eighth consecutive month, reaching 88.8 in November, the European Commission reported on Friday. Expectations had been for a more modest gain in morale to 87.6. - EMU Nov consumer confidence up to -17, as expected - EMU Nov industry confidence up to -19, as expected - EMU Nov services confidence up to -4 vs Oct -7 - EMU Nov construction confidence up to -26 vs Oct -29 - EMU Nov retail sector sentiment up to -11 vs Oct -15 * GERMANY: Import prices in the Germany rebounded 0.5% on the month in October, partially reversing September's 0.9% fall and leaving the annual change at -8.1%, the Federal Statistical Office reported on Friday. - Germany Oct import prices above MNI median M/M fcast (+0.1%) * FRANCE: French consumer confidence improved for the fourth month in a row to -30 in November from October's upwardly revised -34 level, INSEE reported on Friday. - France consumer morale above expected; MNI survey median -35 * SPAIN: Nov preliminary HICP +0.4% y/y; Oct -0.6% y/y; sep -1.0% y/y

Rates in London Trading TIME EURO-USD USD-YEN CABLE EURO-YEN EURO-STG 0600 GMT 1.4908 86.00 1.6402 128.20 0.9089 0700 GMT 1.4936 85.90 1.6416 128.30 0.9098 0800 GMT 1.4863 86.15 1.6306 128.04 0.9115 0900 GMT 1.4871 86.35 1.6350 128.41 0.9095 1000 GMT 1.4897 86.52 1.6401 128.88 0.9082 1100 GMT 1.4915 86.40 1.6405 128.82 0.9090

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