The Japanese currency temporarily slid in London to the lowest exchange rate for the first time in about 15 years against euro, following the Bank of Japan's announcement that it is modifying its monetary policy.

The yen dropped to the 160 level against the euro at one point on the London market on Tuesday. That is the lowest it has been since August 2008.

The yen also fell against the dollar to the upper 150 level at one point.

The Bank of Japan announced it will make its monetary policy more flexible. But market players consider that there will be no significant change, and that the BOJ will likely continue its easing policy.

Observers said this prospect made market players aware of the interest rate gap between Japan and the euro zone, prompting yen-selling moves.

Market sources said some investors had expected the BOJ to lift its negative rate policy, but the BOJ governor indicated the bank will maintain its easing policy. The sources added that, following the comment, some investors rushed to sell the yen.