TOKYO - Japan said yesterday it will boost its currency intervention fund and keep watching dealers' trading positions in yet another effort to tame the yen in the face of growing evidence that its strength is stalling the economy's post-quake rebound. August industrial output and other data showed Japan's swift recovery from the March 11 earthquake and tsunami was tailing off under the weight of the yen's strength and faltering global growth. Finance Minister Jun Azumi said the government would authorise a further ¥15 trillion (S$254.4 billion) for market interventions, effectively increasing the amount available to a record ¥46 trillion. He also said the government will maintain for two more months monitoring of currency traders' daily positions put in place last month to discourage speculative bets on the yen's rise. The yen has held broadly steady against the dollar at around ¥76-77 since Tokyo bought a record ¥4.5 trillion worth of currencies on Aug 4, but the currency continued to rise against the euro and currencies of its Asian rivals. And with the yen still within striking distance of its all-time high of ¥75.94 against the dollar, Tokyo is clearly alarmed that its exporters are ill equipped to cope with such persistent yen strength. "The recent ¥75- to 80-yen range could pour cold water on the Japanese economy's recovery," Mr Azumi told reporters, a clear signal that not only sharp market moves, but the very levels at which the yen has been trading was a concern. The currency market showed little reaction, though, with one traders describing Mr Azumi's warnings as "posturing". Some players said, however, boosting the war chest would serve as a reminder that intervention was a possibility. "Boosting forex intervention fund is to send the message to the market that Japan will not have immediate trouble if it intervenes," said an analyst. REUTERS

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