According to reports, the Japanese government is considering altering the wording concerning monetary policy in its annual policy strategy document to avoid creating an impression of exerting pressure on the central bank.

The initial draft of the government's forthcoming Basic Policy on Economic and Fiscal Management, known as the "Honebuto" (big-boned) policy, stated that the "appropriate implementation" of monetary policy was "extremely important." This phrasing was interpreted by some as a hint aimed at discouraging the Bank of Japan from further interest rate hikes.

The reports indicate that the latest draft has added language concerning inflation, calling for the implementation of appropriate monetary policy that contributes to achieving stable price rises. An unnamed government official cited in the reports stated that this revision reflects authorities' concern that some financial market participants had misinterpreted the original wording. The reports did not mention whether the phrase "extremely important" would be adjusted.

This draft of the economic and fiscal policy is viewed as a key driver behind the yen's weakness and rising bond yields, as markets worry that higher government spending could lead the Bank of Japan to delay further rate hikes. The final version of the policy is scheduled for release later this month.

In early Tokyo trading on Wednesday, the yen traded around 162.30 per U.S. dollar, not far from the four-decade low of 162.84 it touched last week.