Japan's yen saw its lowest level since August 1998, dropping to 135 against the dollar at the beginning of the week.
The USD/JPY exchange topped 140 in 1998.
Meanwhile, the Nikkei 225 Stock index plunged by 836.85 points or 3.01% to 26,987.44 points at Monday's close.
The country's inflation rate was 2.5% in April.
While several central banks decided to or signaled for interest rate hikes to tackle with the high inflation rates, the Japanese central bank has maintained its monetary easing policy.
