Bank of Japan Governor Kazuo Ueda said Tuesday he had exchanged views with Prime Minister Fumio Kishida over economic and financial conditions "in general" but did not specifically discuss forex moves during their meeting.
The meeting came amid caution about the possibility of another currency market intervention by Japanese authorities as the yen has already slipped past the levels where they stepped in to stop the currency's sharp declines against the U.S. dollar last year.
As the BOJ chief explained the Policy Board's decision to loosen its grip on long-term government bond yields, Kishida was quoted as saying, "I understand well."
The BOJ in late July decided to allow 10-year Japanese government bond yields to rise above 0.5 percent, though its program to keep borrowing costs extremely low remains in place.
Ueda said at the time the decision was meant to boost the effectiveness of monetary easing and to curb volatility in the financial markets.
The BOJ's move, however, has so far failed to reverse the yen's weakening trend, due largely to rising U.S Treasury yields. The dollar was trading near the 146 yen line, shortly after Ueda's meeting with the prime minister.
The BOJ is deeply committed to ultralow rates, while the Federal Reserve has been aggressively raising interest rates to curb inflation, making the dollar more attractive than the yen.
