* Analysts say safe-haven yen to keep gaining
* ECB keeps rates steady, Trichet says bond buying ongoing
(Updates prices, adds quotes)
By Julie Haviv
NEW YORK, Aug 4 (Reuters) - The yen slid on Thursday after Japan intervened to curb its strength to support the country's export-led economy, a move that should have a fleeting impact as global economic concerns keep demand for the safe-haven currency high.
Japan's intervention came one day after the Swiss National Bank unexpectedly cut interest rates to cap a soaring Swiss franc. While the yen tumbled during the Asian and European session, losses were later pared as risk-aversion reigned.
Constant yen selling versus the dollar by Japanese authorities during the European session briefly pushed the dollar above the psychologically key 80 yen level, traders said. Tokyo had been steady yen sellers in the Asian market.
"Japan and Switzerland can do all they want to slow appreciation, but they will not be able to stop it," said Peter Schiff, CEO of Euro Pacific Capital, based in Westport, Connecticut.
"Japan and Switzerland should not intervene because economic growth and a strong currency go hand-in-hand and history shows that," he said. "When America was a mighty industrial power, it also had the strongest currency in the world."
Euro Pacific Capital has $3 billion in client assets under advisement.
A voracious appetite for safety ensued as investors fret about sluggish global growth and peripheral debt woes, causing European and U.S. stocks to plunge and U.S. Treasuries to soar.
"It is a stupid thing when policymakers try to weaken their currency," Schiff said.
Japan's move had pushed the U.S. currency roughly 4 percent higher to a three-week high of 80.25 yen, according to electronic trading platform EBS. Gains were later sharply pared and it last traded at 78.98 yen, up 2.5 percent.
On Monday, the dollar hit a four-month low of 76.29 yen, close to its record trough of 76.25 yen hit in March after the earthquake.
Euro gains were also curbed and last traded at 111.74 yen, up 1.3 percent. Yen selling had earlier sent the euro zone single currency more than 3 percent higher against the yen.
Japan sold one trillion yen, or $12.5 billion. For more see [ID:nL3E7J41YW]. Finance Minister Yoshihiko Noda confirmed Tokyo had intervened, saying Japan had acted alone but was communicating with other countries on the move. [ID:nT9E7IP021]
"Japan is being very aggressive in their intervention and the process has been more aggressive than usual," said Brad Bechtel, managing director and head of sales at Faros Trading in Stamford, Connecticut.
"Japan was not only looking at the pace of appreciation of the dollar/yen, but also the cross rates with China and Korea as they are their biggest competitors."
The BOJ conducts intervention on behalf of the Ministry of Finance, which is in charge of currency policy.
Japan's intervention was its first since March 18 when the BOJ and other major central banks jointly intervened after the yen surged to a record high versus the greenback.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Meanwhile, European Central Bank President Jean-Claude Trichet said that the bank's bond-buying program is continuing. [ID:nFAT007235] Trichet's comments followed the ECB's announcement it was keeping interest rates steady [ID:nL6E7J411S]
After a brief bounce, the euro fell below $1.42 against the dollar after trading above it as markets were disappointed that the ECB bought smaller amounts of peripheral bonds. It last traded at $1.4154, down 1.2 percent.
European traders had earlier said the ECB was in the market buying Portuguese and Irish sovereign debt. (Additional reporting by Naomi Tajitsu and Anirban Nag in London; Editing by Kenneth Barry)
