Japan's currency is heading for further declines and its longest weekly loss against the euro in five years as the nation's bank chose to hold interest rates.
 
With the bank holding rates and consumer prices shown to have fallen, the yen dropped to 162.84 per euro and 119.59 against the dollar.

Koji Fukaya, senior currency strategist at Deutsche Securities in Tokyo, told Bloomberg: "Consumer price data damped any speculation the Bank of Japan will bring forward an interest rate increase."

The expert added that the yen may fall to 120 against the dollar later today.

Japan's core consumer prices failed to impact positively upon the currency, having fallen to 0.3 per cent in March. Production was seen to drop 0.6 per cent against economists' forecasts of a 0.9 per cent gain.

Meanwhile, analysts are predicting a continued downward trend in the dollar as market participants hope to sell more of the US currency.