LONDON, Sept 9 (Reuters) - The yen hovered near a 15-yearhigh against the dollar on Thursday as conflicting messages frompolicymakers prompted traders to bet Japanese authorities werenot yet ready to intervene.
Japanese Finance Minister Yoshihiko Noda said on Thursdaythe ministry was conducting simulations on forex intervention,but the yen hardly budged as the perception remains that Japanis unlikely to intervene until the dollar falls near 80 yen.
The impact of Noda's comments was somewhat undermined asBank of Japan Governor Masaaki Shirakawa said he did not talkabout currencies and monetary policy at a government meeting.
By 0950 GMT, the dollar fell 0.3 percent to 83.63 yen, neara 15-year low of 83.34 yen hit on trading platform EBS onWednesday.
"Comments from Japanese authorities indicated they are notin a hurry to intervene, so new lows should be tested," saidRoberto Mialich, currency strategist at Unicredit in Milan.
Options traders said there was good demand for yen calls inthe 1- to 2-month bracket, but yen puts were more popular inshorter dates, indicating investors were hedging their betsagainst possible intervention.
The one-week dollar/yen risk-reversal, the premium requiredto hold a put or a call, traded marginally in favour of yenputs, traders said.
The euro fell to 105.97 yen, nearing a nine-year low of109.44 yen hit in late August. It was last down 0.4 percent at106.22 yen.
DOWNWARD BIAS FOR EURO
The euro remained pressured as investors fretted about thefragile euro zone banking system, while the dollar hovered near a15-year low against the Japanese unit.
The single currency fell on comments late on Wednesday fromEuropean Central Bank Executive Board member Juergen Stark, whotold a meeting of German lawmakers that German banks wereundercapitalised, according to a participant.
"Confidence is evaporating in the euro zone banking system,particularly for Portugal, Ireland and Greece, and supportingthe system will require government debt to rise to unsustainablelevels. That is what the market is concerned about," said LeeHardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
The euro traded flat against the dollar at $1.2712. Bidswere seen at $1.2680 and $1.2630, traders said. A near-termtarget was seen at the 100-day moving average of $1.2664.
The euro revived a bit after ECB Governing Council memberYves Mersch said the euro zone was on the brink of a sustainablerecovery and the ECB was likely to discuss removing some supportmeasures at its December meeting.
But the bias remains to the downside, Unicredit's Mialichsaid. "The $1.2660 level may hold, but at the end of the day,there is not much room for recovery."
Talk of massive options with a strike price of $1.2600 setto expire later in the day could dictate trade, one London-basedtrader said.
The Australian dollar extended gains as a barrier was takenout at $0.9250, hitting a four-month high of $0.9259 on strongjobs data and raising speculation of a rate rise.
Interest rate futures were pricing in a 24 percent chance ofa rate increase, compared to just 7 percent before, and this wasseen supporting the Aussie in the near term.
