Japan finance minister warns of high FX volatility, signals readiness to act

TOKYO, April 3 (Reuters) - Japanese Finance Minister Satsuki Katayama on Friday put currency traders on notice, saying the government stands ready to act against speculative moves in foreign exchange markets as volatility has risen "significantly."

The yen, trading near the psychologically key 160-per-dollar mark, lingered at levels that have repeatedly stoked concerns of market intervention, underscoring growing unease in Tokyo over the speed and scale of its decline.

"We are seeing a rise in speculative activity in both crude oil futures and foreign exchange markets, and volatility has increased significantly," Katayama said at a regular press conference.

Katayama has previously flagged speculative activity, but her latest comments highlight growing government unease as currency markets turn increasingly volatile.

"As exchange-rate volatility driven by these developments is affecting the livelihoods and economy of the public, we are prepared to respond fully on all fronts," she said.

Asked about the Bank of Japan's monetary policy, she said it's up to the BOJ to decide on specific monetary tools.