Tetsushi Kajmoto and Daniel Leussink

TOKYO (Reuters), – Shunichi Suzuki the Japanese Finance Minister refrained Friday from commenting about the possibility that government intervention may be necessary in order to stop a weak yen. He also warned against sudden fluctuations.

This latest jaw-boning occurred a day following a new 20-year low for the yen against the dollar, and seven-year high against the euro. It was based on the expectation that the Bank of Japan will not follow other central banks when it comes to exiting its stimulus policy.

Weak yen trends have boosted import commodity prices and raised the living costs for Japan’s resource-deficient population.

When Suzuki was asked about possible intervention, Suzuki stated that he would not comment on currency level or the question of intervention.

Suzuki stated that currency stability was the most important thing. Rapid fluctuations were not desired, and he reiterated this official statement at a press conference.

We will keep an eye on currency markets and the impact they have on Japan’s economy. This is why we feel a need to act quickly.

The Japanese currency fell as high as 134.56 Yuan per Dollar on Thursday.

The weakening yen likely put Japanese currency authorities in a bind, according to Daisaku Ueno chief forex strategist at Mitsubishi UFJ. Morgan Stanley (NYSE:) Securities.

Ueno claimed that although the intervention has failed, it still does not reach a level of danger around 145 yen. This is where intervention might be warranted.

This year, the yen has fallen more than 14% against USD. Last traded at around 134.05 Japanese yen/dollar.

Ueno stated that Japan could theoretically take unilateral action and intervene, but Ueno advised that U.S. authorities had advanced notice.

He said, “But that would disturb (U.S. Treasury Secret Janet) Yellen, who is a firm believer in market-determined currency rates at a time where the U.S. faces rising inflation.”

Even though Japanese authorities have repeated verbal warnings about the weakening yen in recent months, they remain neutral in their attempts to interfere in the market. Partly because the strong U.S. currency suggests that the currency is sliding due to fundamental reasons.

A government source who has knowledge of the subject told Reuters under anonymity that velocity would play a greater role than other factors in determining the need to intervene.

Suzuki stated Friday that Japan’s government will respond to foreign exchange agreements made by the Group of Seven.

An analyst consensus is not reached on what the trigger point should be for currency intervention.

Some investors saw the previous 125-yen/dollar level as a trigger to action in the foreign market. It was the level that BOJ Governor Haruhiko Kuroda called the “Kurodaline” and which signalled caution after the yen had reached the mark for the first time in 2015.