(Bloomberg) -- Bank of Japan Governor Kazuo Ueda says he told Prime Minister Fumio Kishida that he’s carefully watching the impact of the weak yen on prices, a possible sign of closer coordination to come as the currency continues to show weakness.

“In general on foreign exchange rates, they can potentially have a large impact on the economy and prices, so I confirmed that the Bank of Japan will closely monitor the recent yen’s weakness in conducting policy,” Ueda said Tuesday after emerging from his first meeting with Kishida since March 19, the day the BOJ ended its negative rate regime. 

The two shared opinions on that decision while also exchanging views on recent currency moves, the economy and financial markets, Ueda said. The gap of around seven weeks since their last meeting is unusually short for talks between the governor and premier at the prime minister’s office.

The meeting comes after Japan appeared to step into the market on two occasions last week to prop up the yen after the exchange rate briefly hit 160 against the dollar, its weakest level since 1990. The recent fall was partly fueled by Ueda’s comments playing down the impact of the weak currency on the deeper inflation trend after the BOJ stood pat at its April meeting. 

“Ueda seems to be adjusting his tone on the yen,” said Takahide Kiuchi, executive economist at the Nomura Research Institute and a former BOJ board member, flagging the governor’s lack of apparent concern over the currency at the April press briefing. “I don’t think this is a signal for a rate hike coming soon. But this indicates that the BOJ will join the government in verbal intervention to prevent the yen from falling further.”

The yen strengthened a tad against the dollar after reports of the meeting, briefly taking the exchange rate below 154. But the dollar soon regained ground to reach 154.63 around 7 p.m. in Tokyo.

Read more: Doubts Over Intervention After Yellen Spurs Weak Yen Bets

Yen weakness has escalated despite Japan’s first interest rate hike since 2007 in March. Expectations that the Federal Reserve will lower US rates have receded, while the BOJ has indicated it isn’t planning to raise rates rapidly. That divergence means the yawning gap between US and Japanese interest rates will continue for longer than expected, keeping downward pressure on the yen.

Japan appeared to lose patience with the downward slide after the fall to 160 last week. Movements in the BOJ’s accounts indicate that Tokyo likely did intervene twice last week, spending around ¥6.2 trillion ($40 billion) on Monday and around ¥3.2 trillion early Thursday based on figures updated from last week’s initial estimates.

Japanese officials have declined to confirm if they conducted intervention, keeping investors in the dark about the market moves. 

Read more: Japan Likely Spent About $23 Billion in Latest Yen Intervention

Traders often view meetings between BOJ governors and prime ministers as an indication of growing concerns over trends in markets and the economy. 

With dynamics in the currency market unlikely to change for now, Japanese officials need to show a united front on the currency so they can limit further falls and the need for more intervention.

Japan’s currency authorities have pointed to a Group of Seven agreement that allows some scope for action in markets if movements become excessive and disorderly and impact the economy or financial stability.

Treasury Secretary Janet Yellen reiterated Sunday that the US expects “interventions to be rare and consultation to take place.”

--With assistance from Jon Herskovitz.

(Adds economist comment)

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