TOKYO. Apr 3: The US doUar soared to a six-year high against the yen on Friday, after credit rating agency Monday's Investor Service signaled it may downgrade Japanese government debt because of the country’s weak economy, reports AP.

The dollar bought 134.56 yen in Tokyo at late afternoon, up 0.69 yen from the same time on Thursday and above its late New York rate of 133.50 yen overnight. The US currency rose as high as 135.20 yen — its strongest since April 1992.

In the report Friday. Moody's changed its outlook for Japan's economy to "negative" from the previous "stable" — a sign it may be considering lowering its appraisal of the Japan's ability to repay its dents.

"The change reflects uncertainty about the ability of the authorities to achieve a policy consensus that would help promote a return to economic growth and fiscal balance." the New York-based ratings agency said.

Speaking to a press conference after the reports' release. Japanese Finance Minister Hikaru Matsunaga said the government may move to prop up the yen.

The Moody's report pushed both the yen and Japanese stocks into a nosedive by heightening already intense concern about the country's faltering economy. It came just a day after a widely watched survey by the Bank of Japan showed business managers

more pessimistic about the economy than at any time since 1994.

"That Moody's called into question Japan’s credit risk will have a very big and broad impact on the yen. stocks and everything," said Tatsuya Ishii, head of customer foreign exchange at Banque Nationale de Paris on Tokyo.

"Investors want to see whether the government can actually implement effective steps." said Takahisa Matsuura, general manager of the equity department at Momura Securities Co.