UPDATE 1-U.S., Japan disagreement on yen moves overshadows G7 meeting

Sat May 21, 2016 6:37am EDT
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* Japan Aso says recent yen moves are disorderly, one-sided

* U.S. Lew says 'high bar' for yen to be considered disorderly

* Europeans show little concern over recent FX moves

* Japan fails to gain consent for joint G7 fiscal action (Recasts with comments from briefings)

By Leika Kihara and Tetsushi Kajimoto

SENDAI, Japan, May 21 (Reuters) - The United States issued a fresh warning to Japan against intervening in currency markets on Saturday as the two countries' differences over foreign exchange overshadowed a Group of 7 finance leaders' gathering in the Asian nation.

Japan and the United States are at logger-heads over currency policy with Washington saying Tokyo has no justification to intervene in the market to stem yen gains, given the currency's moves remain "orderly".

The rift was on full show at the G7 finance leaders' meeting in Sendai, northeastern Japan, with U.S. Treasury Secretary Jack Lew saying he did not consider current yen moves as "disorderly" after a bilateral meeting with his Japanese counterpart.

"It's important that the G7 has an agreement not only to refrain from competitive devaluations, but to communicate so that we don't surprise each other," Lew told reporters on Saturday. "It's a pretty high bar to have disorderly (currency) conditions.   Continued...