Bank of Japan Deputy Governor Hirohide Yamaguchi said on Monday the central bank is ready to take bold and flexible monetary policy action when necessary to support the economy.
Yamaguchi said the central bank has no intention of directly influencing yen moves, because under current law it is prohibited from intervening in the currency market.
"But that doesn't mean we do not care anything about currency moves," he told a forum, adding that the BOJ will take action if necessary taking into account the effect of yen moves on Japan's economy and prices.
The BOJ eased monetary policy last week by boosting its asset buying programme, with prospects of a near-term recovery in the world's third-largest economy having faded due to weakening exports and a prolonged slowdown in Chinese growth.
(Reporting by Leika Kihara; Editing by Michael Watson)