The U.S. dollar briefly hit the 115 yen threshold in the morning on Thursday on continued impacts of an additional monetary easing announced by the Bank of Japan (BOJ) last week.
At around 11 a.m., the dollar changed hands at 115.03 yen for the first time since November 2007, and retreated later to about 114.95 yen compared with 114.60-70 yen in New York and 114.41-42 yen in Tokyo at 5 p.m. Wednesday.
The dollar also maintained its appreciation momentum after the Republicans' victory in the U.S. mid-term elections that raised hopes for its pro-business policies.
The U.S. Federal Reserve said last month that it decided to end its asset-buying program, contributing to the dollar's fast appreciation against the Japanese yen.
A weaker yen is expected to boost Japan's exports, but it is also a double-edged sword that could also raise import costs that may enlarge Japan's huge trade deficit.
Although Prime Minister Shinzo Abe has hailed the BOJ's decision to further its ultra-loose monetary policy, he also showed concern over the yen's rapid falling that may have negative effects on economy.
Abe said Tuesday that the government will be vigilant on the change of the yen's value, referring to the positive and negative effects by the further weakened yen, and it will do whatever it can do to respond the yen's depreciation.