Japan's yen fell on Friday after the country's central bank sent a relatively dovish message to the markets following its decision to leave monetary policy on hold.
Although the Bank of Japan upgraded private consumption and overseas growth projections, Governor Haruhiko Kuroda said it would still be some time before it could dial back its stimulus operations.
At 0.3%, core consumer price inflation in Japan remains a gulf away from the BoJ's target rate of 2%.
Kuroda said in the following press conference: "There's some distance to achieving 2% inflation, so it's inappropriate to say now specifically how we will exit our ultra-loose monetary policy, and how that could affect the BOJ's financial health."
He further indicated that the central bank would only begin debate on an exit strategy once the 2% inflation target was achieved and remained stable.
The yen was weaker, falling 0.4% against the dollar to Y111.36, and was 0.6% lower against the euro at Y124.41 and down 0.5% to Y142.18 against the pound.
Pound climbs as BoE hawks increase in number
Sterling was also higher against the dollar as investors juggled with recent softer economic data and a surprisingly hawkish outcome from Thursday's Bank of England meeting.
While UK consumer price inflation, at 2.9%, is well above the Bank's 2% target, most believed the BoE was prepared to live with it as weak wage growth has contributed to falling consumer spending.
This was expected to bring down the level of inflation in the coming months, yet two further members of the Bank's rate-setting committee voted for a quarter point rise in interest rates at Thursday's meeting.
This left the result 5-3 in favour of leaving policy unchanged, but sterling responded to the two hawks and on Friday the pound was up 0.2% against the dollar at $1.2775.
"Taken at face value, the backdrop of rising inflation and robust labour market might seem to justify the surprisingly hawkish tone of the MPC following its meeting today," said Abi Oladimeji, chief investment officer at Thomas Miller Investment.
He added, however: "A rate hike by the Bank of England at any point over the next year is likely to turn out to be a grave policy error."
Euro recovers from two-week low
Euro strength deterred the pound from gaining against the single currency. After falling to a two-week low against the dollar on Thursday, it was back on the rise.
Sterling fell 0.2% to €1.1426. The euro gained 0.3% against the dollar to $1.1173.
Renminbi keeps investors guessing
China's renminbi, which has gained 1.2% since the beginning of May, continued to keep investors guessing.
Half of these gains have come since the People's Bank of China introduced "coutercyclical measures" in its daily fixing of the renminbi's trading band on 26 May.
The PBoC calculates a daily mid-point from which it allows the currency to fluctuate by 2% either way.
The countercyclical measures introduced an additional formula designed to prevent rapid depreciation at a time when Chinese authorities are concerned about capital flight.
In the last two trading sessions, however, the renminbi has fallen, suggesting some profit taking from dollar speculation against the Chinese currency.
Over the last two days the renminbi gained 0.3% against the dollar to 6.8151.