Tetsushi and Leika Kajimoto

TOKYO, Reuters -Japanese Finance minister Shunichi Suzuki denied that he discussed with Janet Yellen, U.S. Treasury Secretary Janet Yellen, a currency intervention to stop yen weakening during their last meeting.

Suzuki said that he and Suzuki had confirmed that it was necessary to follow the Group of Seven (G7) agreement of financial leaders on currencies. It states that markets set exchange rates, but that members of the bloc would discuss any actions in FX markets.

Minister O’Neill also stressed the importance of currency stability. He stated that fast moves are undesirable following G7 agreements that excess volatility or disorderly movements can negatively affect economic and financial stability.

Suzuki said that she would be closely monitoring the market, with an urgency. He also spoke out about recent yen weakness. This could have an impact on prices and economic growth in Japan.

TBS reported last Friday that Suzuki and Yellen had discussed the possibility of a joint currency intervention in order to stop yen drops during their Washington meeting.

The yen is hovering around $128 per dollar and just off its 20-year lowest point earlier in the month, leading to speculation that Japan might intervene to stop the weakening.