*
Japan voiced concern over weak yen boost to import costs
*
Analysts say markets on heightened alert on intervention risk
*
Suzuki says won't rule out options to address excessive FX moves
*
BOJ's Ueda says will hike rates if trend inflation accelerates
(Adds ruling party lawmaker's comments in 7-8th paragraphs)
By Leika Kihara and Makiko Yamazaki
TOKYO, April 23 (Reuters) - Japanese Finance Minister Shunichi Suzuki said last week's meeting with his U.S. and South Korean counterparts has laid the groundwork for Tokyo to act against excessive yen moves, issuing the strongest warning to date on the chance of intervention.
"I voiced strong concern on how a weak yen pushes up import costs. Our view was shared not just in a meeting with my South Korean counterpart, but at the trilateral meeting that included the United States," Suzuki told parliament on Tuesday.
"I won't deny that these developments have laid the groundwork for Japan to take appropriate action (in the currency market), though I won't say what that action could be," he said.
The fresh warnings came after the dollar rose to 154.85 yen , its strongest levels against the Japanese currency since 1990, keeping markets on heightened alert for any signs of intervention from Tokyo to prop up the yen.
The United States, Japan and South Korea agreed to "consult closely" on foreign exchange markets in their first trilateral finance dialogue last week, acknowledging concerns from Tokyo and Seoul over their currencies' recent sharp declines.
The rare warning from the three countries' finance chiefs, which was inserted in a joint statement after their meeting, was seen by some analysts as Washington's informal consent for Tokyo and Seoul to intervene in the market when necessary.
Japan could intervene in the currency market at any time as recent yen falls are excessive and out of line with fundamentals, ruling party executive Satsuki Katayama said.
"I don't think Japan will face any criticism if it were to act now," Katayama told Reuters in an interview on Monday, when asked about the timing of a possible currency intervention.
BOJ MEETING IN FOCUS
While a weak yen boosts exports, it has become a headache for Japanese policymakers as it inflates the cost of living for households by pushing up import prices.
At a regular news conference earlier on Tuesday, Suzuki stressed that Japanese authorities will work closely with overseas counterparts to deal with excessive volatility in the foreign exchange market.