Finance Minister Masajuro Shiokawa said Tuesday that the rapid decline of the dollar must be checked before it reaches the 115 yen level.

"Since there is a (pessimistic dollar) tendency, we must prevent the dollar from reaching that level by all means," Shiokawa told a regular news conference.

Shiokawa made a similar remark on exchange rates last week, inviting speculation that the Japanese government would tolerate the dollar falling to the 115 yen level.

While saying that there are various ways to interpret his remark, Shiokawa disavowed the speculation.

"I meant that, if (the dollar) falls rapidly, it would be troublesome. I did not mean to approve" of the dollar reaching that level, Shiokawa said.

He told a Diet committee later in the day that Japanese monetary authorities are following the pace of the yen's appreciation against the dollar, and repeated that they remain prepared to intervene in the markets if necessary.

"The authorities are interested in the speed" of the dollar's drop, Shiokawa said. "If it is too rapid, we must think of ways to deal with that."

During Tuesday's afternoon trading in Tokyo, the dollar moved in a narrow range near 118.5 yen amid a lack of fresh incentives.

The dollar stood at 118 yen.56-59 at 5 p.m., down from 118 yen.84-88 at the same time Monday, after moving from 118.50 yen to 118.95 yen.

In the morning, the dollar was pressured largely by sales by players worried about a string of accounting scandals at U.S. firms, including Merck & Co.

Shiokawa's comment that he will not tolerate the dollar falling to 115 yen provided some support for the U.S. currency, traders said.

Chief Cabinet Secretary Yasuo Fukuda, at a separate news conference, also said the pace of the dollar's fall is a cause for concern.

"In the last couple of months, the yen has risen more than 10 percent," the top government spokesman said. "There should be discussions on whether the pace is too fast."

Fukuda said the dollar's fall "could be a stumbling block" for the Japanese economy.

Economy, Trade and Industry Minister Takeo Hiranuma said the dollar weakening could hurt the export-led pickup in the Japanese economy.

"As an export-oriented nation, it is not desirable that the strengthening of the yen advances too much," he said.

Japan has intervened on behalf of the dollar seven times since late May in an effort to keep the nation's exports affordable abroad and keep exporters' profit margins from narrowing.