On Thursday, the dollar fell versus the majority of other currencies ahead of U.S. inflation statistics that will determine the Fed's course of action later in the day. However, the dollar did reach the highest level in one month against the Japanese yen, largely due to increased oil prices.

The expected annual rate of headline inflation is 3.3%, with the core rate—which includes the volatile food and energy segments—expected to increase by 0.2% in July for a gain of 4.8%.

Although the BOJ decided to loosen its grip on long-term yields at the end of last month, officials have emphasized the shift was merely a technical adjustment meant to prolong the life of stimulus, which is primarily represented by the negative short-term interest rate.

EUR/USD advanced by 0.44% to $1.10235.

GBP/USD edged up 0.3% to $1.2757.

USD/JPY muted at 143.77 per dollar, post previously softened at 144.14 per dollar, its lowest level in a month.