Published by Zeb BhamThe Bank of Japan may try to introduce fiscal instruments to weaken the yen if the currency hits 87 per dollar, according to Deutsche Bank.Speaking to Bloomberg, Koji Fukaya, a Tokyo-based senior foreign exchange strategist with the world's largest currency trader, said that the central bank may introduce more cash into the economy in a move designed to artificially weaken the yen.The scheme would have parallels with the Bank of England's £200 billion quantitative easing programme, which is likely to have contributed to the sharp depreciation of the pound in 2009.He added that the bank may also decide to increase its government bond purchases if the yen continues to climb against the dollar. Both currencies have risen dramatically in recent sessions amid widespread forex hedging provoked by mounting concerns about global economic recovery.However, the dollar lost ground yesterday (February 16th) as foreign exchange traders moved back into high-yield currencies such as the Australian dollar.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site