TOKYOLONDON, July 3 Reuters The yen traded at fresh 38year lows against the dollar and a record trough against the euro on Wednesday, as the currency continued its downward grind, with Japanese officials largely remaining on the sidelines amid the risk of intervention.

The dollar edged lower against a basket of currencies, extending Tuesday39;s decline after dovish comments from Federal Reserve Chair Jerome Powell overshadowed a robust domestic jobs report.

The euro remained resilient, helped by a stubbornly high local inflation reading on Tuesday that suggested the European Central Bank would take its time before cutting interest rates again. Sterling was steady ahead of Thursday39;s UK election.

The yen weakened by as much as 0.3 to 161.96 per dollar for the first time since December 1986. It also hit an alltime low of 173.80 against the euro .

Japanese authorities have been largely quiet on the yen this week, with Finance Minister Shunichi Suzuki only commenting on Tuesday that moves were being watched vigilantly. He refrained from repeating the oftused warning that the ministry stood ready to act.

Atsushi Mimura is taking over as the ministry of finance39;s currency czar at the end of this month, replacing Masato Kanda, who oversaw the 9.8 trillion yen 60.67 billion round of intervention spanning several days in late April and early May, when the currency plunged to 160.82 per dollar.

Right now, the FX market is challenging the Japanese authorities to do…