* Yen falls as Japan Fin Min resigns; fiscal concerns weigh
* Euro off lows vs dollar; mkt monitors Greece situation
* Focus on Friday's U.S. jobs data; U.S. ADP, ISM data ahead
(Adds quote; updates prices)
By Jessica Mortimer
LONDON, Jan 6 (Reuters) - The yen fell against the dollar on
Wednesday after Japanese Finance Minister Hirohisa Fujii
resigned, while the euro trimmed losses against the dollar as
earlier concerns about Greece's fiscal health ebbed.
Japanese Prime Minister Yukio Hatoyama said Deputy Prime
Minister Naoto Kan will become finance minister after Fujii was
widely touted to step down for health reasons. []
Fujii's departure was seen adding to the challenges piling
up for the Japanese government as it wrestles with deflation, a
fragile economy and huge public debt, although analysts said
there would be likely be little impact on currency policy, which
is controlled by the finance ministry.
"From a forex policy perspective, there is not a great
significance in the change from Fujii to Kan, as the perceived
change in yen policy was more DPJ-led rather than by any
individual," said Derek Halpenny, European head of global
currency research at Bank of Tokyo-Mitsubishi UFJ in London.
But he added: "If markets perceive there is greater
disagreement within the DPJ and also of (Japan's ruling party
No. 2 Ichiro) Ozawa undermining Hatoyama behind the scenes, it
would be negative for Japanese markets generally."
By 1203 GMT, the dollar was up 0.8 percent <JPY=> on the day
at 92.46 yen, near a session high of 92.50 yen, according to
Reuters data. The euro <EURJPY=R> rose 0.7 percent to 132.73
yen.
For the latest Reuters polls on currencies, see
[].
EURO SAGS, U.S. JOBS EYED
The yen had been weakening against the dollar even before
the Japanese finance minister's resignation news.
"It has been a factor. But also, U.S. Treasury yields have
stopped declining. The fall in U.S. bond yields had led to yen
buying in the first days of the year, and now we are seeing a
partial reversal of that," BTM UFJ's Halpenny said.
Elsewhere, the euro pared early losses made after European
Central Bank executive board member Juergen Stark said the
European Union would not bail out Greece.
Analysts said market players still believe the EU would find
a solution to Greece's huge fiscal problems as EU and ECB
officials were due to arrive in Athens on Wednesday for an
inspection visit. []
The euro stood at $1.4348 <EUR=>, down 0.1 percent on the
day, after hitting a low of $1.4282 on trading platform EBS, on
steady buying demand below $1.43, traders said.
"The fact that the euro has bounced back suggests that there
is demand for euros at these low levels, while the market
suspects that there will eventually be a solution to the Greece
problems - people are just waiting to see what happens," said
Gavin Friend, currency strategist at nabCapital.
Greek Finance Minister George Papaconstantinou repeated that
his government did not need outside help because it had
announced a range of steps in recent weeks to start reducing the
budget deficit.
The dollar index <DXY> was slightly higher at 77.755.
Trade was cautious ahead of key U.S. jobs data on Friday.
The payroll data is expected to shape expectations for when the
Federal Reserve will start tightening its ultra-loose monetary
policy and determine the direction of the dollar.
The market will watch the U.S. ADP's employment report at
1315 GMT for clues on Friday's jobs report. The ISM
non-manufacturing index for December, along with minutes from
the Fed's last policy meeting are also due out later in the day.
(Additional reporting by Tamawa Desai; Editing by Toby Chopra)
