LONDON, Nov. 30 (MNI) - The yen remained sensitive to talk about intervention from Japanese officials Monday in the wake of last week's move to 14-year highs against the greenback.

Japanese PM Hatoyama was on the wires, though it was a comment from Strategy Minister Kan which spooked the market, suggesting the government had agreed measures to stop the yen rise.

Dollar-yen moved from Y86.15 to Y86.60 in quick time, with the rate then easing to Y86.20 mid-morning. Euro-dollar was caught in the cross-flows, trading in a relatively tight range on a $1.50 handle throughout.

YEN SUMMARY: Opened in early Europe around Y86.21 and Y129.72

spiked higher into early Asia Monday as risk trades were re-established following weekend reports that the UAE would provide liquidity to Dubai on a "case-by-case" basis. Highs were notched at Y87.45 before a quick turnaround as the Mainichi newspaper quoted Finmin Fujii saying "Japan won't intervene to weaken the yen". Dollar-yen dropped back to Y86.40 before a denial from Fujii "never said that intervention is impossible", with the rate then contained under Y87.00 into the Asian afternoon. Euro-yen was up 150 points in early trading, though afternoon trade did see a pullback to Y129.41.

before jawboning from Japanese officials placed the yen under pressure. Comments from Strategy Minister Kan were the main driver, saying the govt. agrees measures to stop the yen rise, moving dollar-yen from Y86.15 to Y86.60 as euro-yen spiked back above Y130.00.

JAPAN: Reported comments from Japanese officials Monday, * SHIRAKAWA: Comments from BOJ Governor - Recent FX moves destabilising. - Rise in FX volatility undesirable. - Japan is in mild deflation. - Always aim to conduct most appropriate policy - Anti-deflation actions resemble stimulus steps - Forex rates should move in stable manner * FUJII: Japan Mainichi quoted Fujii saying, he would not intervene in currency markets and that now is a time to monitor markets * FUJII: Wire ran comments from Japan FinMin Fujii, saying he never said forex intervention was impossible. (Rtrs) * FUJII: FinMin Fujii reported saying, - Not thinking of issuing more bonds if extra budget over Y2.7tln * HATOYAMA: Japan PM Hatoyama reported saying, - Should act swiftly in responding to yen rise * KAN: Comments from Japan Strategy Minister - Govt agrees to measures to stop yen rise - Govt agrees to cooperate with BOJ as much as possible * KAMEI: Japan bank minister Kamei adds, intervention by Japan alone would have effect of just sending money to the US.

JAPAN: Data released in Japan Monday, * Oct industrial output +0.5% m/m vs Sep +2.1% - Industrial output posts 8th straight m/m rise in Oct - Fcast index: Japan Nov output seen +3.3% m/m, Dec +1.0% - METI repeats view: Japan output continues to show upward move * Average monthly total cash earnings per regular employee in Japan fell 1.7% in October, posting the 17th straight y/y drop but slowing further from the 1.8% drop in September and the record 7.0% drop in June caused by falling bonuses, data from the Ministry of Health, Labor and Welfare released today showed. The last time the average wage posted a series of consecutive year-on-year declines was during a 27-month period from February 2001 through April 2003.

EURO SUMMARY: Opened in early Europe around $1.5047

market providing the early react demand (after the UAE central bank over the weekend said it would provide ample liquidity to local banks) to take the rate to an initial high of $1.5020 before dropping back to $1.4965 as early Tokyo sold euro-yen. The positive reversal in risk lifted Asian equity markets with the tone providing a second wave of risk on demand, the addition of Asian sovereign buying this time taking euro-dollar to session highs of $1.5085. Rate eased back to $1.5030, as euro-yen squeezed lower into the Asian afternoon.

selling coming through from a German name as the rate dropped down to make a brief show under $1.5020. Reported demand in this area proved sufficient to contain the fall, with the subsequent bounce from here contained around the $1.5050 area mid-morning.

DUBAI: Dubai's Nakheel said all three listed Sukuks on the Nasdaq Dubai to be suspended. Nakheel adds the sukuks should remain suspended until it is in a position to "fully inform the market". DUBAI: The United Arab Emirates sought to contain the financial crisis caused by member country Dubai, announcing Sunday an emergency lending facility for its banking system to stem potential capital flight.

EUROZONE: Reported comments from eurozone officials Monday, * GERMANY FINMIN: 2009 Fed net borrowing some E10bln below plan * FRANCE FINMIN: See no risk of credit crunch - Aim to cut deficit under 3.0% of GDP, but only if cyclical conditions permit. * IFO INSTITUTE: The financing situation of firms in Germany remains critical, posing a risk to the country's economic recovery, the Ifo Institute wrote Monday. Releasing its monthly indicator on credit conditions in Germany, the institute observed that lending restrictions sharpened in November, after easing in October. Currently, 42.9% of firms assess banks' lending policies as restrictive, the institute wrote, up from 41.7% in October.

EUROZONE: Data released in the eurozone Monday, * EMU: Eurozone inflation rose to +0.6% in the year to November, according to Eurostat flash estimates. General expectations had been for a more modest +0.5% figure. * FRANCE: Oct PPI +0.8% m/m, -6.6% y/y; Sept -0.4% m/m, -8.0% y/y - Above expected; MNI analysts survey median forecast -0.1% m/m * ITALY: Oct PPI 0.0% m/m, -6.1% y/y * ITALY: Preliminary November HICP rose 0.1% m/m, 0.8% y/y, accelerating from October's +0.3% y/y rise. - The preliminary main domestic index (NIC) rose 0.1% m/m and 0.7% y/y, up from 0.3% y/y in October.

narmstrong@marketnews.com