"Unlike during the global financial crisis, we're not seeing a major decline in short-term liquidity. But the BOJ will continue to scrutinise market developments, and their impact on global and domestic economies," Akio Okuno, head of the central bank's monetary affairs department, told parliament.

Global stock, currency and bond markets have whipsawed due to President Donald Trump's back-and-forth comments on tariffs, with some analysts seeing the recent sharp declines in U.S. Treasuries and the dollar as a sign markets are losing confidence in the safe-have status of U.S. assets.

Japan, for its part, is gearing up for trade negotiations with the United States this week that will likely touch on the thorny topic of currency policy, with some officials privately bracing for Washington to call on Tokyo to prop up the yen.

Finance Minister Katsunobu Kato said Japan and the U.S. share the view that markets should set exchange rates, and that excessive and disorderly currency moves have adverse effects on the economy and financial stability.

"I hope to continue dialogue with the U.S. based on this shared understanding," Kato told parliament. He declined to comment on what the two sides could discuss on exchange-rate matters as part of bilateral trade negotiations.

In an earlier news conference, Kato said he is making preparations to attend the spring International Monetary Fund and World Bank meetings later this month, where he could hold bilateral meetings with his counterparts including the United States.

Japan, a long-time U.S. ally, has been hit with 24% levies on its exports to the United States though these tariffs have, like most of Trump's sweeping "reciprocal" tariffs, been paused for 90 days.

But a 10% universal rate remains in place as does a 25% duty for cars, which is set to be particularly painful. The U.S. is Japan's biggest export destination and automobile shipments account for roughly 28% of its exports there.