* Yen near record high, markets on alert for intervention
* Swiss franc dives as SNB eyes more steps to weaken it
* SNB's Jordan says bank could peg euro/franc temporarily (Updates prices, adds comment, details, changes byline, dateline, previous LONDON)
By Wanfeng Zhou
NEW YORK, Aug 11 (Reuters) - The dollar and euro soared more than 5 percent versus the Swiss franc on Thursday after the Swiss National Bank said it could ease monetary policy further and possibly peg the franc to the euro to rein in a soaring currency.
Vice Chairman Thomas Jordan was quoted by the local press as saying the SNB could make monetary policy more expansive without intervening in foreign exchange markets. His comments fueled speculation that Switzerland could be considering introducing negative interest rates.
When asked about temporarily pegging the franc to the euro -- which the SNB would have to defend through interventions -- Jordan said: "Temporary measures that influence the exchange rate are part of our mandate so long as they are compatible with long-term price stability." See [ID:nL6E7JB026]
"I think the market respects the Swiss National Bank's move recently to weaken the currency," said Michael Woolfolk, senior currency strategist at BNY Mellon in New York. "There have been numerous comments over the past 24 hours about the need to hold currency strength, including the possibility of fixing the Swiss franc to the euro, which is a remarkable comment."
The euro was last up 5.7 percent at 1.0889 francs, compared with a record low of 1.0075 set as recently as Tuesday.
Analysts said the SNB could choose to peg euro/franc around the 1.15 level.
The dollar rose 5.6 percent to 0.7671 franc.
Negative lending rates "could dissuade investors from holding Swiss franc-denominated assets as a safe harbor from euro zone and global economic uncertainty," said Omer Esiner, chief markets analyst at Commonwealth Foreign Exchange in Washington.
The yen hovered near a record high against the dollar as investors continued to sell riskier assets, fueling speculation that Japanese authorities may step in to stem the yen's gains.
The dollar fell as low as 76.302 yen
Traders cited option barriers around 76.25 yen, with large option expiries at 76.00 yen later on Thursday.
Earlier in London trading, the dollar briefly jumped above 77 yen from 76.30 yen, but soon fell back after traders said they had not seen any yen-selling intervention by Japanese authorities. A finance ministry official declined to comment.
The euro rose 0.2 percent at $1.4202