Aug 24 (Reuters) - The U.S. dollar pared losses against the yen on Tuesday after the Nikkei business daily reported the Bank of Japan is considering additional steps to loosen monetary policy.
The paper reported that Japan's central bank may decide to take action sooner by convening an extraordinary meeting, depending on market conditions. Actions could include boosting its facility that provides three-month funding at 0.1 percent to 30 trillion yen.
The dollar was down 0.8 percent percent against the yen at 84.40 yen rising from the 84.13 yen level it traded at before the headlines reached investors. The low on the day was 83.61 yen.
Japan's Ministry of Finance may consider unilateral yen-selling market interventions if speculators drive up the currency, the paper said.
The market's obviously on high alert for some form of intervention, but until we see it, the stronger yen trend will remain intact, said Brian Dolan, chief strategist at Forex.com in Bedminster, New Jersey. With U.S. yields where they are, all simple intervention will do is give speculators better levels at which to buy yen. (Reporting by Nick Olivari and Steven C Johnson)