Finance official says Japan ready to take action on yen

A senior official of Japan's Finance Ministry has sounded a warning about the yen's rapid depreciation. That's as the Japanese currency hovers at a 24-year low against the dollar.

The official says the recent plunge cannot be attributed only to fundamentals and that the government and the Bank of Japan are extremely concerned.

Kanda Masato, Vice Minister of Finance for International Affairs said, "If the yen continues on this trend, we are ready to take necessary measures in the currency market. We rule nothing out."

Kanda made the comment after a meeting with officials from the Financial Services Agency and the BOJ.

The officials confirmed that they would closely monitor the impact of the yen's rapid depreciation on Japan's economy and commodity prices.

The yen weakened to the upper-144-level to the dollar at one stage this week as investors took the view that interest rate hikes would continue in the US.

They became concerned about a widening gap between US and Japanese rates.