By Monica Bertran and Greg Quinn — April 23, 2008 13:02 EDT

April 23 (Bloomberg) — Canadian Finance Minister Jim Flaherty said currency markets appear to have ignored a Group of Seven statement expressing concern about the decline in the U.S. dollar.

«It doesnt seem to have affected the market very much, that particular statement of concern, Flaherty said in a Bloomberg Television interview from New York today.

The G-7 this month warned recent «sharp fluctuations in exchange rates risk hurting the global economy. Luxembourg Finance Minister Jean-Claude Juncker and French Finance Minister Christine Lagarde have also expressed frustration that investors havent paid more attention to the change in the G-7s language.

The G-7 April 11 statement from Washington was the first significant change in wording on currencies since February 2004 in Boca Raton, Florida, when the group denounced «excess volatility and disorderly movements in exchange rates.

«The statement itself papered over lots of differences and the fact is, regardless of what they say, people in the market tend to see the differences more than the unity on currencies as the main feature of the G-7, said David Gilmore. a partner at Foreign Exchange Analytics, an Essex, Connecticut-based research company.

No Intervention

The euro fell the most against the dollar in more than three weeks today after Juncker signaled concern that the pace of the U.S. currencys decline will hurt economic growth.

Flaherty said G-7 officials didnt discuss the possibility of a coordinated intervention in currency markets to support the U.S. dollar. «There was no discussion of a direct intervention when we were together, he said.

The euro has risen 0.6 percent in April and 8.9 percent against the dollar this year.

Frances Lagarde said April 14 that investors havent grasped the magnitude of the shift, likening its significance to the 1985 Plaza Accord. The Group of Five at that time agreed to «coordinated intervention to drive down the dollar.

Juncker, who heads a group of counterparts from the euro area, told reporters today that «it was not the intention of the G-7 to lead to the result we are noting today.

The euro dropped 0.8 percent to $1.5871 at 11:13 a.m. in New York, from $1.5991 yesterday, when it climbed to $1.6019, the highest level since the currencys 1999 debut. The dollar rose 0.7 percent to 103.76 yen, from 103.02.

«I know the Europeans are particularly concerned with the appreciation of the euro, vis-a-vis the U.S. dollar, Flaherty said.

To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net.