Japan's Liberal Democratic Party that is committed to assertive monetary easing has won in an election. A recent report reveals that this landslide for the party has caused the Yen to plunge to its lowest ever.

Monday, the currency dropped the most if compared to the dollar in more than one and a half year. Earlier, the dollar had hit 84.48 yen and was at its strongest since the month of April, 2011. And on Monday, the same was up 0.5% at 83.91 yen.

It is being said that this increase over yen only allowed the dollar to target the 200-week, which moved average at 85.008 yen. The reason of fall in yen is aggressive monetary easing plan of the LDP, since the same would drive ex-Prime Minister Shinzo Abe back to power.

The report finds that Abe has also called for big spending on public works and a boost in the inflation target so that the economy could be saved. Analysts believe that such kind of ultra-loose monetary policy would cause further plummet in yen.

"The yen weakening trend will be sustainable and dollar/yen will move higher while euro/yen also has the potential to move sharply higher", Morgan Stanley's head of European currency strategy Ian Stannard affirmed.