LONDON. Nov 10: Haruhiko Kuroda. Japan s vice finance minister for international affairs. said yesterday recent yen strength was to appropriate and Japan could not afford to relax its efforts to keep economic recovery on track, reports Reuters.

Bankers who attended a private meeting with Kuroda at the Bank of England told Reuters he had said that while the Japanese economy was past its worst, the recovery was not as firmly established as had been hoped for.

"A rapid and sharp appreciation of the yen at this point would seriously undermine future growth prospects." Kuroda said according to the text of the speech made available to the bankers, which was later obtained by Reuters.

In reply to a question, the Ministry of Finance official said that while Japan might intervene on the foreign exchanges. any such action would be a strategic decision and would not be decided beforehand. bankers who attended the meeting said.

Japan has Intervened to sell yen at least 10 times since June. At least five of the operations have taken place since Kuroda

took up his Job in July, replacing Eisuke Sakakibara, the man dubbed Mr. Yen for his influence over currency markets.

The dollar has fallen as much as 13 per cent since the first June intervention, hitting three-and-a-half-year lows around 103.20 in September. It was trading around 105 yen on Tuesday.

Kuroda's comments on the undesirability of yen strength prompted currency dealers to sell yen but the dollar quickly ceded gains of about a quarter of a yen after his later comments assuaged concern about the risks of intervention anytime soon.

Kuroda said the authorities were more concerned that a rapid appreciation of the yen could dent confidence than about the impact such a move would have on exports, bankers who attended the meeting said.

He, therefore, stressed the need to ensurethe economic recovery was not aborted.

"Japan should not. indeed cannot afford to be complacent about its prospects for recovery given that the recent economic indicators are mixed even though they show an undeniable improvement overall." he said in the text of his speech.