The Japanese Yen has fallen to its lowest level in 16 months against the euro on indications that the newly elected government will push the stimulus as part of its efforts to boost the economic growth in the country.

The yen fell 0.4 percent to 113.68 per euro today, and also recorded its lowest level since September 2010 versus the dollar. Japan's Nikkei 225 Stock Average climbed to the highest level since March 10, 2011. Yen is trading at its lowest level in several months against the US dollar and the Euro amid indications that the authorities are moving aggressive to boost the economic growth.

Analysts said that the fall is due to expectations for additional political pressure on the Bank of Japan after this week's elections in the country.

The Bank of Japan said on Thursday that it is expanding its scheme to purchase treasury bills and government bonds by 10 trillion yen or about $119 billion. The latest addition would take the total to a whooping 101 trillion yen and is aimed at reviving the slowing growth in the world's third largest economy.

The new government is expected to make BOJ act more aggressively to take steps to revive the economy. BoJ is also offering unlimited loans to banks in the country boost domestic demand and encourage lending. Government's efforts are expected to put pressure on the national currency.