As per the reports by news agency Jiji unveiled Saturday, Japanese Prime Minister, Naoto Kan has pledged to keep a good track of yen's exchange rates. In addition, he announced to extend full cooperation to the Bank of Japan in a view to deal with the emerging yen problem, Jiji posted.

However, how and when the situation would be managed is yet to be pondered over, Kan said.

In addition, he posted to be in plans to have a tabling with Bank of Japan Governor Masaaki Shirakawa in a bid to discuss the ways to control yen's recent strength, which hampered Japan's export-driven economic recovery, Jiji reported.

“The current yen strength is being caused by a faster-than-expected slowdown of the U. S. economy. While I expect the yen to hover around Y85 to the dollar near term, by the end of this year, or maybe as early as the beginning of September, it could rise to a new record high against the dollar", Sakakibara explained.

It is speculated that the prime minister may convene an emergency meeting with Shirakawa next week over the same.

Besides, many traders are hoping that the bank could be a hit due to greater political pressures in a bid for monetary assuaging if the yen continue to mark an upward journey.