By Leika Kihara and Yoshiyasu Shida
TOKYO, July 5 (Reuters) - Global financial markets remain jittery with little progress being made in dealing with the root cause of Europe's debt woes, a senior Bank of Japan official said on Monday.
Restoring market confidence in Europe's banking sector will take time, Haruyuki Toyama, head of the central bank's financial markets department, told Reuters in an interview, adding that the Bank of Japan will carefully watch how developments affect financial markets.
Asked whether the yen's recent sharp gains will hurt Japan's economy, Toyama said: "I'd like to refrain from commenting on currency levels. But in general, sharp currency moves affect household and corporate activity."