The Japanese Yen has fallen to its lowest level in four months against the US dollar due to expectations of a new rate cut by the Bank of Japan aimed at stimulating the national economy.

The yen fell 0.4 percent to 80.16 per dollar after it touched 80.19, which is its weakest level since 25 June, 2012. The yen fell 0.7 percent to 104.26 per euro. Foreign exchange dealers said that the market players are expecting additional easing of the monetary policy by the Bank of Japan in the coming week.

Japanese Prime Minister Yoshihiko Noda is expected to announce a fresh round of economic stimulus later in the month of November following a slowdown in the Japanese economy. It is believed that if the country's central bank decided to lower rates to stimulate the monetary supply then the market could begin a major sell off Yen.

The measures by the government will include measures to curb deflation, ease strength in the yen, expand earthquake reconstruction work and relax regulations on businesses. Japanese government is considering funding the new stimulus with 910 billion yen that were allocated for economic emergencies and the revitalization of regional economies in this year national budget.

The Nikkei 225 Stock Average (NKY) of Japanese shares rose 1.1 percent.