The greenback dipped versus the yen on Thursday, following the BOJ’s less dovish stance, while the US data indicated that inflationary pressures are continuing to subside. This scenario supports the likelihood that Fed is on the course of cutting interest rate by 25 basis point next week.

On Thursday, reports indicated that U.S. consumer spending rose slightly more than anticipated in September, setting the stage for stronger economic growth as the year wraps up.

According to a report from the Commerce Department, the inflation rate based on the Federal Reserve's preferred measure—the year-over-year change in the personal consumption expenditures index—stood at 2.1% in September, down from a revised 2.3% in August. The Fed has a target inflation rate of 2%.

The greenback faced additional pressure versus the yen as the BOJ adopted a less dovish stance than anticipated. Meanwhile, the euro strengthened following data indicating that inflation in the eurozone accelerated more than expected in October, reinforcing the argument for caution regarding interest rate cuts by the European Central Bank.

The dollar index that gauges the greenback versus its major pairs added 4.5% from September dips.

EUR/USD edged up 0.4% at $1.0859.

GBP/USD slipped 0.8% to $1.2857, a day after British finance minister Rachel Reeves unveiled the largest tax increases since 1993 in her initial budget.

USD/JPY dipped 0.8% at 152.18.