The yen's current levels seem too high, a senior Cabinet Office official said on Friday, expressing worries over the impact a strong yen could have on Japan's fragile economy.

The economy is moving toward a standstill, although views are divided on whether it has stalled, Keisuke Tsumura, a parliamentary secretary at the Cabinet Office, told reporters.

I get the impression current (yen) levels are a bit too high. We will closely watch how this will affect businesses and the economic recovery, which lacks support from domestic demand.

Tsumura works under Economics Minister Satoshi Arai. The Cabinet Office does not have control over currency policy, which falls under the jurisdiction of the Finance Ministry.

The dollar hit a seven-month low of 86.27 yen JPY= last week, putting the focus on whether Japanese policymakers will increase their warnings against yen gains.

The fall took the dollar close to a 14-year low of 84.82 yen set last November, but it has since recovered to around 87.00 yen. (Editing by Charlotte Cooper)