In a meeting Thursday, the government and the Bank of Japan affirmed that they will cooperate on action over speculative moves in the currency market after the U.S. dollar dropped below the ¥100 line.
"We are monitoring the market very carefully all the time," Masatsugu Asakawa, vice finance minister for international affairs, told reporters after the meeting. "We will steadily take necessary measures" if there are speculative moves, he said at the Finance Ministry.
BOJ Executive Director Masayoshi Amamiya and officials from the Financial Services Agency attended the meeting.
The dollar fell to the upper ¥99 zone Thursday morning in Tokyo, weighed down by receding expectations of a near-term U.S. interest rate hike.
Asakawa declined to comment on whether the recent yen moves are speculative. The market is susceptible to volatility amid thin trading during the summer holidays.
The government and BOJ have been meeting about once a month since March this year, but Thursday's meeting was the second in August.