SINGAPORE, Nov 1 Reuters The battered yen found a footing on Wednesday on renewed threats of intervention from Japan and as investors turned their focus toward a Federal Reserve policy meeting later in the day.

U.S. interest rates are expected to stay on hold, though the release of Treasury refunding details may move the bond market.

Having dropped 1.7 on Tuesday to a oneyear low of 151.74 per dollar, the yen stabilised at 151.32 in Asia trade, following more pointedthannormal remarks from Japan39;s top currency diplomat, Masato Kanda.

Speculative trading seems to be the biggest factor behind recent currency moves, Kanda told reporters in Tokyo, adding authorities were on standby to respond.

The Bank of Japan raised inflation forecasts on Tuesday, but not policy rates. It redefined its 1 limit on 10year government bond yields as a reference rate, rather than a hard cap.

In the market, that tweak to policy wasn39;t regarded as enough to close the wide interest rate gaps between Japan and other countries that has been responsible for the yen39;s 13 decline this year.

Let39;s not forget that BOJ is normalising policy from ridiculously low levels, said Claudio Irigoyen, global head of economics at Bank of America Global Research.

It39;s still the case that interest rate differentials are widening significantly in favour of the U.S. So the normalisation … is relatively fast for BOJ standards, but relatively slow relative to what we are seeing in the rest of the…