The Japanese yen has reached to its strongest level on Tuesday hitting a 17-month high while threatening to undermine Bank of Japan's (BoJ) push for inflation. Increase of inflation up to its predefined goal appears as a key effort for the Japanese central bank in reviving the world's third largest economy.  

Japanese currency has been witnessed to strengthen as much as 1.1% to ¥109.98 against each dollar in London during late hours on Tuesday. Analysts observe, yen hasn't appreciated to such an extent since October 2014.

Meanwhile, yen has reportedly appreciated against a dozen of major currencies. It has recorded 1% gain in value and rxchanged at ¥125.61 per euro.

However, renewed strength of yen is believed to cause trouble for the BoJ which has adopted quantitative easing policy aiming to weakening the currency. The ultimate aim is to help Japanese exporters in competition and stir inflation rate lagging behind the target for decades, reports Financial Times.

The appreciation of yen heightens the risk for market intervention by the BoJ. The Japanese government has been observing foreign exchange movements, informs Yoshihide Suga, Japanese Chief Cabinet Secretary.

Meanwhile, Haruhiko Kuroda, BoJ governor has reiterated the possibility for more interest rate cuts. 9% appreciation in yen's value has helped it secure position in the best performing 'Group of 10' currencies, according to a report published in Bloomberg.