The yen was once again on the slide this week as a fresh deflation scare rocked hopes that Japan was progressing steadily towards ending its ultra-loose monetary policy.

Most of the currency’s losses were racked up yesterday as Japan unveiled better-than-expected annualised GDP growth of 5.5 per cent for the fourth quarter of 2005, cementing full-year growth of 2.8 per cent – twice that of the eurozone.