UPDATE 1-Japan PM Fukuda says downside risks to economy rising

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TOKYO, March 29 (Reuters) - Japanese Prime Minister Yasuo Fukuda said on Saturday that downside risks to the economy were heightening, citing such risks as a slowdown in the U.S. economy, rising oil prices and movements in stock prices and currencies.

Fukuda, told a media briefing that it was important for the authorities of the Group of Seven industrialised nations to be in close touch and ready to take necessary steps aggressively, as such a stance would send a message to the markets.

G7 finance ministers and central bankers will meet in Washington on Friday, April 11, for their regular spring gathering as they try find a solution to the credit crunch, a G7 source told Reuters on Thursday.

The meeting comes at a crucial time for the world economy as the credit crunch that has gripped the financial system since last August still appears to have no end in sight despite the U.S. Federal Reserve slashing interest rates and central banks joining together to flood markets with extra cash.

The dollar fell to a 13-year low of 95.77 yen <JPY=> and to a record low against the euro of $1.5905 <EUR=> earlier this month and analysts said the G7 -- which comprises the United States, Japan, Germany, Britain, France, Italy and Canada -- were expected to discuss the plunging value of the dollar as European and Japanese politicians are worried about their exporters losing competitiveness. (Reporting by Yuko Yoshikawa, writing by Chikako Mogi; editing by Louise Heavens)