Nov. 6 (Bloomberg) -- Japanese Vice Finance Minister Yoshihiko Noda said he’s prepared to tell counterparts from the Group of 20 nations that his government hasn’t indicated it favors a stronger yen.

Finance Minister Hirohisa Fujii “has mentioned that he has never voiced support for a higher yen,” Noda told reporters today in St. Andrews, Scotland, before a meeting of finance ministers and central bankers from G-20 nations. Noda added that he is ready to explain the stance “if necessary,” and that currencies aren’t on the agenda for the meeting.

Perceptions that the Democratic Party of Japan-led government, elected in August, is tolerant of currency gains helped the yen rise more than 6 percent versus the dollar in the past three months, analysts say. While the advance threatens to hurt the nation’s exports, the new administration has repeatedly said Japan must reduce reliance on overseas demand.

“Nations should avoid competitive currency devaluation,” Noda said today. He also said that “excessive movements in currencies are undesirable,” and that it is “desirable for the yuan to be flexible.”

China has prevented its currency from appreciating against the dollar since July 2008, leaving it falling against other currencies, including the euro and yen, as the dollar dropped.

Chinese central bank Governor Zhou Xiaochuan today rejected the notion that his government is under escalating international pressure to allow the yuan to advance.

Asked about comments by U.K. Chancellor of the Exchequer Alistair Darling that G-20 nations should develop a way to tackle asset-price bubbles as the world’s leading economies recover, Noda said he isn’t sure whether the idea will be shared by the group’s members.

To contact the reporter on this story: Keiko Ujikane in Tokyo at kujikane@bloomberg.net

Last Updated: November 6, 2009 13:03 EST