LONDON, Dec. 2 (MNI) - The yen was under pressure Wednesday as Japanese Prime Minister Yukio Hatoyama again tried to talk the currency down, while measures taken at Tuesday's extra policy meeting to introduce new funding measures were also seen weighing on the currency. Selling was particularly evident on the crosses as sterling-yen and euro-yen led the way higher, pulling dollar-yen to Y87.40, with all pairs holding gains mid-morning. Euro-dollar saw a brief extension of the Asian highs to $1.5110, faltering ahead of stops at $1.5120 and ending steady around $1.5095.

EURO SUMMARY: Opened in early Europe around $1.5084

$1.5118. The rate eased to mark session lows at $1.5072 early in the session before picking up a bid tone as risk gained a boost from strong demand for gold, with the yellow metal extending recent life time highs to $1217/oz. Euro-dollar saw good demand from Asian names which lifted it to highs of $1.5103, with the move aided in part by strong post fix demand for euro-yen. The rate settled back, with trade ahead of the European open contained within a range of $1.5080/00.

session on Asian sovereign sales. A major US name emerged to counter, allowing for a recovery back above $1.5100 as European stocks started in the black. Stops at $1.5120 held firm as traders noted large expiry interest at $1.5100 for the NY cut possibly serving to contain. The rally topped out at $1.5110, with the rate then holding around $1.5095 ahead of the US open.

EUROZONE: Reported comments from eurozone officials Wednesday, * GERMANY: Comments from German EconMin - Govt could take regulatory measures if banks do not lend more * GREECE: European finance ministers have vowed to put pressure on Greece to cut the government's "worrying" budget deficit, saying the country faces new European Union demands in February if it doesn't comply, wires reported overnight.

EUROZONE: Data released in the eurozone Wednesday, * EMU: Eurozone producer prices unexpectedly rebounded 0.2% on the month in October, leaving the annual change at -6.7%. - EMU Sep PPI M/M unrev -0.4%; Y/Y rev -7.6% (-7.7%) - EMU Oct PPI above MNI median M/M forecast (0.0%) - EMU Oct PPI above MNI median Y/Y forecast (-6.8%) * GERMANY: VDMA; Germany Oct machine orders -29% y/y; Sep -33% y/y - Oct domestic machine orders -29% y/y; foreign orders -28% y/y - Aug-Oct total orders -35% y/y; domestic -36% y/y; foreign -34% y/y * GERMANY: VDA; Nov new passenger car registrations +20.0% y/y - Nov car exports +13.0% y/y, production +9.0% y/y - Jan-Nov new car registrations +25.0% y/y - Jan-Nov car exports -20.0% y/y; production -12.0% - VDA Wissman; World auto sales to drop 5.0% in 2009 * GERMANY: VDIK; November new car registrations +20.0% y/y * SPAIN: Nov unemployment +1.59% m/m; Oct +2.67%

YEN SUMMARY: Opened in early Europe around Y87.22 and Y131.56

on to a good portion of the day's gains at Y130.75. Traders reported a fairly calm Asian session, dollar-yen gaining a slight bid tone into the fix as the pair headed towards Y87.00, while Japanese banks bought euro-yen up from Y130.65. Gains were extended to Y131.55 into the afternoon session as dollar-yen moved up to Y87.17 after offers in the Y87.10 area were cleared. Balance of the Asian day was spent in consolidation mode, dips in dollar-yen cushioned at Y86.90 as euro-yen found support in the Y131.20 area.

pressure as dollar-yen moved on to Y87.30 and the cross extended gains towards Y131.70. Sterling-yen demand was also evident as dollar-yen moved to Y87.40 and euro-yen rallied to Y131.99. Yen pairs were still holding the majority of the day's gains ahead of the US open.

JAPAN: Reported comments from Japanese officials Wednesday, * HATOYAMA: PM Hatoyama said, (From Nikkei News) - Yen's rise cannot be left "as it is" - Unsure whether yen rise is temporary. * SUDA: Comments from BOJ board member - Need to conduct best open mkt operations - Prolonged weak prices may cause deflationary spiral - Strong yen could lower japan inflation expectations - Pay attention to L-term rate rise on fiscal concerns - Concern over fragile financial markets continues - Prices to be affected more by weak output gap - Y/Y drop in Japan core CPI to be around -1% year-end - Future monetary policy options "open" now. - Risk of deflationary spiral has not risen yet. - Takes time before Japan returns to sustained growth. * KAMEI: Reported comments from Japan Banking Minister - Deeply unhappy with BOJ steps taken Tuesday. (Rtrs) - BOJ is "sleepy headed". (Rtrs) * SHIRAKAWA/HATOYAMA: Wires report meeting between Japan PM and BOJ head Shirakawa has ended. Shirakawa says he outlined reasoning behind latest BOJ policy move and also about forex, econ matters. Shirakawa says he was not urged by Hatoyama to take additional steps.

JAPAN: Press pick-ups in Japan Wednesday, * JAPAN PRESS: In order to boost Japan's economic stimulus package in the fiscal 2009 second supplementary budget, the Ministry of Finance will set aside an additional Y1 trillion or more by tapping a decrease in interest payments on government debt, the Nikkei reports. The package is now expected to total about Y4 trillion in actual spending -- which excludes such items as loan guarantees -- compared with the early government projection of about Y2.7 trillion.

Rates in London Trading TIME EURO-USD USD-YEN CABLE EURO-YEN EURO-STG 0600 GMT 1.5090 87.00 1.6596 131.28 0.9092 0700 GMT 1.5085 87.22 1.6585 131.57 0.9095 0800 GMT 1.5087 87.20 1.6586 131.55 0.9096 0900 GMT 1.5094 87.35 1.6604 131.84 0.9090 1000 GMT 1.5100 87.35 1.6657 131.89 0.9065 1100 GMT 1.5102 87.36 1.6673 131.91 0.9057

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