The yen briefly weakened to the upper 147-to-the-dollar range in Tokyo on Wednesday, a level not seen since November.
The currency depreciated after Saudi Arabia said on Tuesday it will continue to cut its crude oil output until the end of the year.
Interest rates on long-term US bonds rose as investors took the view that inflationary pressure will intensify and monetary tightening in the United States would be prolonged.
The higher US Treasury yields prompted investors to sell the Japanese currency and buy the greenback.
Kanda Masato, Japan's Vice Minister of Finance for International Affairs said the authorities will do whatever is necessary to stabilize the yen.
He said " Excessive fluctuations in exchange rates could bring uncertainties to businesses and household finances, resulting in a negative impact on the economy. If the yen keeps weakening, we will take appropriate steps with no options ruled out."
Kanda said there are speculative moves in the market that cannot be explained by economic fundamentals.
He added that the Finance Ministry is monitoring the situation closely.