TOKYO (Kyodo) -- The yen hit a five-month low in the upper 157 range against the U.S. dollar in Tokyo on Friday as expectations of interest rate increases by the Bank of Japan in the near future receded.

But the yen later rebounded to the upper 156 level versus the U.S. currency after the Japanese finance minister warned the government will act "appropriately" against excessive currency movements.

The Japanese currency weakened to 157.93 at one point after BOJ Governor Kazuo Ueda said Thursday that the central bank needs to assess more wage and other data before deciding on an additional rate hike. It fetched 156.81-84 yen at 5 p.m. compared with 157.38-48 yen in New York and 156.46-49 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.0381-0382 and 162.80-84 yen against $1.0359-0369 and 163.10-20 yen in New York and $1.0394-0396 and 162.64-68 yen in Tokyo late Thursday afternoon.

The yield on the benchmark 10-year Japanese government bond fell 0.030 percentage point from Thursday's close to 1.050 percent.

The yen had already been under pressure after the U.S. Federal Reserve suggested following its policy meeting earlier this week that there may be fewer interest rate reductions next year amid rising inflation risks.

But the yen trimmed its losses and moved narrowly around the 157 line after Finance Minister Katsunobu Kato said the government is "concerned" about foreign exchange developments, pledging to take "appropriate action" to counter excessive movements in the market.

The words used by the minister were not "strong enough to raise market caution against immediate currency intervention," thus preventing the yen from bouncing back sharply, said Yuzo Sakai, chief manager of business planning at Ueda Totan Forex Ltd.

Tokyo stocks ended lower for the sixth straight trading day, as earlier gains led by export-oriented auto issues on the weaker yen were more than offset by selling of technology shares tracking declines in their U.S. counterparts.

The 225-issue Nikkei Stock Average ended down 111.68 points, or 0.29 percent, from Thursday at 38,701.90. The broader Topix index finished 11.84 points, or 0.44 percent, lower at 2,701.99.

On the top-tier Prime Market, decliners were led by marine transportation, air transportation and bank issues.