Bank of Japan Gov. Toshihiko Fukui warned Thursday that the yen's recent surge against the dollar could hinder the nation's economic recovery.

Fukui made the comments after the BOJ released a monthly economic report stating that the Japanese economy had reached a plateau after the recent strong recovery.

"As we noted in the monthly report, currency fluctuation is one of various factors that cloud our outlook on the economy," Fukui told reporters. "We must watch such currency moves and the impact (on the economy) very carefully."

The dollar dipped below 104.00 yen Thursday for the first time in more than seven months.

The Monthly Report of Recent Economic and Financial Developments says: "Japan's economy continues to recover as a whole, although the increase in exports and production seems to be coming to a pause."

The report also notes that the central bank is cautious over high levels of inventory in the IT-related devices sector and high crude oil prices.

Also Thursday, the BOJ's policy-setting panel elected to keep its ultraeasy monetary stance unchanged. The Policy Board unanimously opted to maintain the target for the outstanding balance of bank deposits held at the BOJ to a range between 30 trillion yen and 35 trillion yen.