UPDATE 1-Japan Fujii: forex steps possible as moves extreme

* Fujii refuses to comment specifically on intervention

* Banking min says international coordination may be needed

By Stanley White

TOKYO, Nov 27 (Reuters) - Japan's finance minister said currency moves had become extreme and a government response was possible, as the yen surged to a new 14-year high against the dollar on Friday. "I am extremely nervous and watching the market carefully," Hirohisa Fujii told reporters after a cabinet meeting.

"There's no doubt the market has moved too far in one direction. Moves right now are extreme, and it would be possible to take appropriate measures."

The greenback slumped to a 14-year low of 84.82 yen JPY= earlier on Friday, as investors shunned riskier assets due to concerns about Dubai's debt problems, but it briefly pared its losses after Fujii's comments.

Fujii added that he would be flexible on the Group of Seven nations issuing a joint statement on currencies. The dollar has been falling broadly recently as expectations that interest rates in the United States will remain low, speculation that Japan won't intervene in currency markets, and a bout of risk aversion all snowballed into a sell-off.

Fujii added that he was flexible on contacting currency authorities in the United States and Europe, and that he was open to the idea of a joint statement. However, he declined to comment on intervention, saying he wasn't in a position to use the word due to commitments with other G7 countries on currency flexibility.

Banking Minister Shizuka Kamei also weighed in on the dollar's slump against the yen, saying he had asked Fujii about the need for coordinated international action. [ID:nTFA006515] ((stanley.white@thomsonreuters.com; +81 3 6441 1984; Reuters Messaging: stanley.white.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))