TOKYO, Aug 2 (Reuters) - Japan is closely monitoring

foreign exchange movements, with hopes that a rebound in the yen

could push down import prices, Finance Minister Shunichi Suzuki

said on Friday.

"Foreign exchange movements have both positive and negative

impacts (on the economy), but our biggest concern right now is

their impact on import prices," Suzuki said in a regular

post-cabinet meeting news conference.

After languishing at 38-year lows below 160 per dollar for

much of July, the yen staged a sharp rally in the days leading

up to and after the Bank of Japan's decision on Wednesday to

raise interest rates.

(Reporting by Makiko Yamazaki; Editing by Muralikumar

Anantharaman)