The yen dropped to its lowest level in five weeks against both the dollar and the euro yesterday.

This morning, the US currency traded at 118.90 yen, which was slightly down from Tuesday's level of near to 119.00, Reuters reported.

The Japanese currency's fall was widely predicted, with the end of last week seeing the yen boosted by the selling off of overseas assets by Japanese investors at the end of the fiscal year.

It was also under pressure from an increase in risk appetite among Japanese investors, as well as a restart in selling the yen at the start of the economy's fiscal year, analysts said.

Currency analyst Kikuko Takedo of the Bank of Tokyo-Mitsubishi UFJ told Reuters "seasonal investments" such as these are contributing to a weaker yen.

However, a boost for the Japanese currency could come later this month, according to industry watchers.

Jim Flaherty, Canadian finance minister, said the yen's performance could be discussed at the G7 meeting next week, Bloomberg reported.

Nobuaki Tani, currency dealer at Resona Bank in Tokyo, told the news agency the Japanese currency is "likely to get a boost from political speculation over the weaker yen", adding that this "could become a catalyst for yen buying".