The group of 20 nations or G20 has backed the Japanese government’s plans to boost its economic growth through bold fiscal stimulus measures in the third largest economy in the world.

Following the two day meet, the group said in a release that possible side-effects of the extended periods of monetary stimulus would be monitored without naming Japan. The move shows that the group of 20 largest economies have endorsed Japan’s position to boost growth after the US authorities said that it will closely monitor the effects of Japan’s stimulus on the currency markets.

The Japanese currency has fallen to new low levels against the dollar following the announcement of more stimulus measures from the Bank of Japan, which will help exporters and boosts repatriated earnings. The BOJ said in the Japanese capital that it will purchase 7 trillion yen or $74 billion of bonds every month. He is aiming to reach 2 per cent inflation in two years as part of the plan to reverse the trend of falling prices in more than 15 years in the world’s third largest economy.

The US The dollar was trading at 99.80 yen after touching an intraday high of 99.89 and just below its highest level in four years of 99.95 achieved on April 11.