Japanese government, central bank share concern over yen's rapid fall

Senior officials of Japan's financial and monetary authorities have said they share concerns about the recent rapid fall in the value of the yen.

The officials held a meeting on Friday as the yen slid to the lowest level against the dollar in about 20 years amid speculation that the gap between US and Japanese interest rates will expand.

Participants included Vice-Minister of Finance for International Affairs Kanda Masato, Financial Services Agency Commissioner Nakajima Junichi and Bank of Japan Executive Director Uchida Shinichi.

They issued a statement after discussing currency market trends and how a weaker yen will affect the Japanese economy.

The statement says exchange rates should move in a stable manner and rapid fluctuations are not desirable.

It also says the government and the BOJ will keep working closely together and vigilantly monitor developments in the currency market and their impact on prices.

The statement adds that Japan will communicate closely with monetary authorities abroad and take appropriate measures when necessary.

Asked by reporters whether the measures include market interventions, Kanda only said the government and the BOJ will respond flexibly with every option in mind.

He declined to say whether the current situation requires such a response.