* Rising yen testing nerves of Japanese policymakers
* Strong yen makes Japanese exports more expensive overseas
* Japan hasn't intervened since 2004 (Adds details, direct quote)
TOKYO, Aug 2 (Reuters) - Japan's finance minister on Monday stepped up his warnings on big currency moves as the dollar hovered near an eight-month low versus the yen due to growing signs that the U.S. economy is slowing.
The dollar stood near 86.46 yen, close to an eight-month low of 85.95 yen hit on Friday after U.S. gross domestic product slowed more than expected in the second quarter.
The greenback is within striking distance of a 14-year high of around 85 yen reached in November, fueling speculation that Japanese authorities could conduct intervention to protect their exporters from a rising currency.
"Excessive foreign exchange moves are undesirable because of the impact they have on the economy and financial markets," Yoshihiko Noda told reporters.
"From that standpoint, we are watching currency moves closely."
Noda's comments seemed stronger than those he made on Friday, when he simply said excessive currency moves are undesirable.
Japan's authorities intervened heavily earlier in the decade to stop a rising yen from harming exports but they quit in March 2004 at the end of a 15-month long spree in which they sold 35 trillion yen ($404.8 billion) to try to shield a struggling economy. (Reporting by Stanley White; Editing by Edwina Gibbs)