(Corrects erroneous reference to sterling's low in 14th paragraph)
* Dollar bounces on hawkish comments from Fed's Lockhart, Dudley
* Japan official warns against excessive moves, response limited
* Fed's July meeting minutes eyed for immediate incentive
* Pound awaits UK employment data after rising overnight
By Shinichi Saoshiro
TOKYO, Aug 17 (Reuters) - The dollar edged off 7-week lows against the yen and euro on Wednesday following hawkish comments from Federal Reserve officials, but scepticism about the Fed's willingness to tighten policy limited the bounce.
The dollar nudged up 0.2 percent to 100.530 yen JPY= after falling to 99.550 overnight, its lowest since June 24, when post-Brexit referendum turmoil had boosted the safe-haven yen.
Comments by Japan's top currency diplomat Masatsugu Asakawa, who said he will respond if there are excessive currency moves, had a limited impact on the pair. euro was steady at $1.1279 EUR= following an overnight rise to $1.1323, its highest since June 24.
The greenback was on the defensive since late last week as downbeat U.S. indicators dented prospects of a near-term Fed rate hike.
It gained some reprieve on hawkish views expressed by Atlanta Fed President Dennis Lockhart, who said two hikes in 2016 was a possibility, and on New York Fed President William Dudley saying the central bank could possibly raise rates as soon as September. views from Fed officials can prompt short covering in the dollar, but they are not sufficient enough to kick off an uptrend," said Junichi Ishikawa, forex analyst at IG Securities in Tokyo.
"This is because the markets now expect only one or two rate hikes this year, when at the end of 2015 they had expected up to four," added Ishikawa, who sees negative economic developments in Europe and Britain in the wake of Brexit weighing on the Fed's decisions and cancelling out any lift from positive U.S. indicators.
Uncertainty over Japanese monetary policy was also seen supporting the yen. The BOJ, which underwhelmed the markets in July with what many investors deemed were token easing steps, will conduct a comprehensive policy review in September. uncertainty has been weighing on Japanese bonds for a while and now the currency market seems to be taking notice as well," said Makoto Noji, a senior strategist at SMBC Nikko Securities in Tokyo.
Analysts say Japan's debt m,arket has been unsettled by speculation that the BOJ would choose against taking interest rates deeper into negative territory or increasing its bond buying.
The dollar index was little changed at 94.822 .DXY after losing 0.8 percent on Tuesday, when it touched a 7-week trough of 94.426.
Currency markets will seek fresh direction from comments expected from St. Louis Fed President James Bullard and the release of the Fed's July policy meeting minutes later in the session.
Having struck near 31-year lows earlier in the week, sterling traded almost unchanged at $1.3041 GBP=D4 following a 1.3 percent rise overnight due to slightly higher than expected U.K. inflation data. will look to the British employment data due later in the session to see if the pound can solidify its position.
The Canadian dollar rose against the broadly weaker greenback. The loonie fetched C$1.2860 CAD=D4 per dollar after touching a 7-week high of C$1.2798 on Tuesday, helped by crude oil's advanced to 1-month highs.
The Australian dollar slipped 0.1 percent to $0.7686 AUD=D4 and the New Zealand dollar was flat at $0.7275 NZD=D4 . (Editing by Simon Cameron-Moore)