TOKYO, Aug 30 - The head of a powerful Japanese business lobby said on Thursday a further rise in the yen would hurt an already fragile economy, calling on the government to coordinate with other countries to curb its strength.
"There is a possibility that the yen will head higher if it's left alone," said Takashi Imai, chairman of the Japan Federation of Economic Organisations (Keidanren).
He said he thought that recent comments by U.S. Treasury Secretary Paul O'Neill suggested the United States may have changed its strong-dollar policy.
"If the yen heads higher now it will be hard for the (Japanese) economy," he said.
Japanese business leaders and policymakers have voiced caution on the yen's recent rise against the dollar, a move seen crippling export-oriented businesses.
The yen last traded at around 119.95 to the dollar.
Imai was speaking at a news conference after a meeting to discuss fiscal reforms with other business leaders and academics. The meeting was also attended by Finance Minister Masajuro Shiokawa.
Shiokawa did not comment on the yen's direction at the meeting, Imai said.