Gov't presses BOJ to help curb yen's slide ahead of policy meeting

© Kyodo News

The government on Wednesday appeared to raise pressure on the Bank of Japan to help address the plunging yen, ahead of its two-day policy meeting starting Thursday.

"We expect (the BOJ) to appropriately take necessary measures in coordination with the government," Chief Cabinet Secretary Hirokazu Matsuno said at a press conference.

The Japanese currency has weakened against the U.S. dollar to levels unseen over the past 24 years, fueling market expectations the central bank will be forced to fine-tune its ultraloose monetary policy that has kept interest rates extremely low at a time when its U.S. counterpart has been raising rates.

Matsuno, the top government spokesman, declined to comment on the possibility of Japan intervening in the currency market to curb the yen's fall, which has hit the economy with rising prices as a result of higher import costs.

"Excessive volatility and disorderly movements (in foreign exchange rates) adversely impact the stability of the economy and financial system," he said, adding, "We will closely cooperate with U.S. and other monetary authorities and respond appropriately when necessary."