Lawmakers urge Obama press Aso not to devalue yen

WASHINGTON, Feb 24 (Reuters) - U.S. lawmakers urged President Barack Obama to press Japanese Prime Minister Taro Aso when they meet on Tuesday to resist calls from the Japanese business community to devalue the yen as a way of boosting exports and stimulating the economy.

Aso is the first foreign leader to visit the White House since Obama took office last month. The two leaders are expected to discuss ways Japan and the United States can work together to boost global economic growth, as well as the situations in Afghanistan and North Korea.

U.S. House of Representatives Financial Services Committee Chairman Barney Frank and Trade Subcommittee Chairman Sander Levin said in a letter to Obama they were concerned by recent Japanese industry and government statements indicating Japan could intervene to reduce the value of the yen.

"These statements are deeply disturbing, given the fragility of the global economy today and Japan's recent history of massive currency market interventions," the lawmakers said.

"We request that you urge the prime minister to resist recent calls to devalue the yen as a means to stimulate Japanese exports at the expense of the U.S. and other economies," the lawmakers said.

Japan's economy shrank 3.3 percent in the last three months of 2008, its biggest contraction in about 35 years, as exports slumped on vanishing global demand.

The United States, which has been in a deep recession for more than a year, has also seen its exports plummet.

The dire situation has spawned fears that countries might be tempted to gain a price advantage for their exports by devaluing their currency.

But analysts warn a series of competitive devaluations could do more even harm to the global economy. (Reporting by Doug Palmer; Editing by James Dalgleish)