Nov. 25 (Bloomberg) -- Japan’s government said a deepening European debt crisis may increase volatility in currency and financial markets, according to a statement released by the Cabinet Office in Tokyo.

The government and Bank of Japan will work together closely when necessary, the government said today.

--Editors: Lily Nonomiya, Paul Panckhurst

To contact the reporter on this story: Kyoko Shimodoi in Tokyo at kshimodoi@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net