The dollar was trading at 119.0 against the Japanese currency at around 8:30 a.m. GMT, after falling sharply by around 1 percent. The greenback had started the session at 120.45 against the yen.
Despite several years of quantitative easing (QE) in Japan - aimed at kickstarting an economy that has faced years of low inflation - the fresh comments from the Bank of Japan hinted at the possibility of a policy change.
A report from Bloomberg - citing people familiar with the matter - said that Bank of Japan policymakers believe extra stimulus would be a counterproductive step for now.
The yen's surge eased slightly by 9:00 a.m. GMT with the report appearing to not show a consensus view for the central bank. The report added that there were concerns that further easing, and thus further declines in the yen, could damage confidence.