SINGAPORE, June 28 Reuters The yen struggled against most major currencies on Wednesday, hovering near a 15year low against the euro as Japanese authorities did not rule out intervention to stem losses, while the Australian dollar dived lower as inflation eased in May.

Japanese authorities are under renewed pressure to combat the yen39;s fresh declines driven by market expectations that the Bank of Japan will keep interest rates ultralow, even as other central banks tighten monetary policy to curb inflation.

We are closely watching currency moves with a strong sense of urgency, Japan39;s top currency diplomat Masato Kanda told reporters on Wednesday.

We will respond appropriately if it becomes excessive.

The yen was hovering around the sevenmonth low of 144.18 per dollar it touched overnight. It was last at 144.

Against the euro, the yen was pinned near the 15year low of 157.93 it hit on Tuesday. Against sterling, the Asian currency was hovering around 183.25, just a shade below the 7.5year low it touched on Tuesday.

With the rise in the dollar against the yen set to run further, we judge the risk has increased the Ministry of Finance intervenes in the FX market by buying the JPY, said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

However, we note it is the speed of change, rather than the level, that matters most in the Japanese finance ministry39;s decision to intervene, Kong said.

Japan made forays into the currency market to prop up…