Chief cabinet secretary warns against excessive yen volatility
Data shows Japan may have spent 13.5 bln in intervention Friday
Japan may have bought 6 trln yen in 2day intervention last week
Analysts see similarities to suspected May 1 yen intervention

TOKYO, July 16 Reuters Japan stands ready to take all possible measures to counter excessively volatile currency moves, Chief Cabinet Secretary Yoshimasa Hayashi said on Tuesday, keeping markets on alert over the chance of renewed intervention to prop up the yen.

Bank of Japan data released on Tuesday suggested Tokyo may have spent 2.14 trillion yen 13.5 billion intervening on Friday last week. Combined with the estimated amount spent on Thursday, Japan is suspected to have bought nearly 6 trillion yen via intervention last week.

It is important for currency rates to move stably reflecting fundamentals. Excessive volatility is undesirable, Hayashi told a regular news conference before the release of the BOJ data.

We will closely watch exchangerate developments and stand ready to take all possible measures, he said.

Hayashi declined to comment when asked whether Tokyo intervened in the currency market to prop up the yen for two straight days last week.

Japanese authorities have recently made it standard practice to not confirm whether they have intervened in the currency market or not.

But traders suspect Tokyo intervened in the market to lift a currency that has languished at 38year lows, once on Thursday after…