Japan MOF Shinohara says watching forex carefully

TOKYO, Aug 17 (Reuters) Japan's top financial diplomat said on Friday he is watching currency markets carefully but declined to comment on specific levels.

''As always we are watching currency markers carefully. We will not comment on specific levels,'' Naoyuki Shinohara, vice finance minister for international affairs, told reporters.

The yen surged in volatile trade on Thursday as investors unwound risky trades financed by using the Japanese currency to buy high-yielding assets, on fears of a global shake-out in financial markets.

REUTERS SZ VP0552