UPDATE 6-U.S. sends Japan currency warning as G7 meets

Fri May 10, 2013 6:26pm EDT
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* Washington's Lew tells Japan to stick to currency rules

* Japan minister says G7 not concerned about its policies

* Dollar jumps to four-year high above 100 yen

* EU economics chief warns against talk of currency wars

* Lew says parts of Europe should create more demand

By Leika Kihara and William Schomberg

AYLESBURY, England, May 10 (Reuters) - The United States told Japan it would be watching for any sign it was manipulating its currency downward, but Tokyo said it met no resistance to its policies at a meeting of Group of Seven finance ministers which will conclude on Saturday.

As ministers and central bankers met on Friday in a stately home set in rolling countryside 40 miles outside London, differences were also evident over whether to prioritise debt-cutting or promoting economic growth.

U.S. Treasury Secretary Jack Lew said Japan had "growth issues" that needed to be dealt with, but that its attempts to stimulate its economy needed to stay within the bounds of international agreements to avoid competitive devaluations.   Continued...