Finance Minister Hirohisa Fujii said the recent gain in the yen stems from a weaker dollar, adding that the greenback has been declining because of low interest rates.
"There's no doubt the U.S. easy monetary policy is behind the recent yen appreciation," Fujii said at the Japan National Press Club on Tuesday. "We can't ignore the fact that the yen gains stem from a weaker dollar."
He said the dollar's decline has also caused the euro to strengthen.
Fujii reiterated that Japan needs to reduce its reliance on exports and economic growth should be driven by domestic demand.
He also said he supported government policy that called for a weaker yen in the past. "There was a time when Japan intentionally sought a weaker yen, and I regret that," he said.