Bank of Japan Deputy Governor Kiyohiko Nishimura said on Wednesday the yen's rise could be a drag on the economy.

The yen's current gains reflect concerns about the outlook for Europe and the U.S. economy, Nishimura was quoted as telling cabinet members in a meeting on the government's monthly economic report.

Uncertainties behind the yen's rise are expected to recede, Nishimura was quoted as saying by Keisuke Tsumura, a parliamentary secretary at the Cabinet Office. (Reporting by Tetsushi Kajimoto, Kaneko Kaori)