On Monday, Bank of Japan's Governor Masaaki Shirakawa confirmed that the bank is keeping a careful eye on the impact of the country's strong currency on its economy, and is completely ready to co-operate with the Government to ensure that there isn't any hindrance is Japan's still vulnerable and new economic recovery.

Governor Shirakawa, while assuring business leaders in Nagoya that the Bank of Japan "pays due attention to the effects of the recent rapid appreciation of the yen on business sentiment", stressed that "stable moves in the foreign exchange market are desirable".

Mr. Shirakawa has shared his bank's intentions immediately after Japan's Prime Minister Yukio Hatoyama sent out an order to the Cabinet Ministers to include measures in the supplementary budget for fiscal 2009 which aim at effectively coping with the rising Yen and falling Japanese stocks.

Mr. Shirakawa and PM Hatoyama are schedule to meet later this week to look into the problems that are threatening the still vulnerable economic recovery of Japan more closely, and discuss possible measures that can be taken.

"I will reemphasize that (the BOJ) is always prepared to act promptly and decisively if judged necessary to ensure the stability of financial markets", Mr. Shirakawa was quoted as saying.