The Japanese Yen has fallen to its lowest level since May 2009 against the US dollar to touch 99.67 to the American currency in Asian trading.

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 US dollar has risen 7 per cent against Yen since BOJ announced its massive stimulus program on Tuesday. Haruhiko Kuroda, the new Governor of the Japanese central bank has announced his decision to expand the monthly bond purchases to twice its level in the country in order to boost the domestic economy.

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. His views are mostly in line with that of Mr. Abe, who has been suggesting more aggressive monetary easing, higher stimulus spending and faster economic reforms.

On the other hand, the Yen touched the level of 129.94 against the Euro, its lowest since January 2010. Experts say that the factors like a falling yen, rising stocks and stimulus bolster indicates that the Japanese economy could show signs of recovery.