TOKYO (Reuters) - A Japanese government spokesman said on Wednesday the country needs to monitor the yen's weakening carefully because of its impact on prices in addition to the positive effect it can have on the economy.
Katsunobu Kato, deputy chief cabinet secretary, also told a news conference the Bank of Japan's "tankan" survey of business sentiment showed that the pullback in demand following the sales tax hike is easing and the economy is continuing moderate growth.
The dollar rose above 110 yen for the first time since August 2008 on Wednesday, continuing to ride on bullish momentum against its peers generated by its gains against a flagging euro.[FRX/]
Reporting by Kaori Kaneko; Editing by Chris Gallagher