White House economist Glenn Hubbard on Thursday denied market speculation that the U.S. administration tolerates a weaker yen.
"The administration does not have such a policy," Hubbard, chairman of the Council of Economic Advisers, told reporters after a speech in Washington.
"The Japanese government and the Bank of Japan need to pursue what policies they think are best."
A report released Wednesday by foreign exchange consultant Medley Global Advisers quoted a senior U.S. official as saying the United States is not targeting a particular level for the dollar against the yen.
It also said the U.S. would support purchases of U.S. bonds by the Bank of Japan to help weaken the yen.
The market responded immediately to the report, sending the dollar above 126.50 yen at one point Wednesday in New York.