The dollar rose slightly against most major currencies on Thursday, as traders awaited key U.S. inflation data that will provide clues on Federal Reserve policy.
Focus on the huge interest rate gap between Japan and the United States helped the greenback make some gains against the yen.
The dollar rose slightly against the yen, after falling more than 3% last week, the biggest weekly percentage decline since early December 2022.
The yen got a slight boost in early Asian trading after the Bank of Japan's summary of views from its April meeting showed that many board members believe interest rates should be raised and the bank should reduce bond purchases.
The US central bank's monetary policy meeting last week and a surprisingly downward trend in US job growth have increased market bets on two interest rate cuts this year.
However, there is still a gap between the very low yields in Japan and those in the United States.
Focus now turns to the US April producer price index and consumer price index due next week, which markets will be watching closely for signs that inflation has resumed its downward trend towards the central bank's 2% target rate.
The dollar index, which measures the greenback against a basket of major currencies, rose 0.05% to 105.55, while the yen was almost flat at 155.59 per dollar.
The pound fell 0.07% to $1.2487 ahead of the Bank of England's monetary policy decision later on Thursday.
The Bank of England is likely to take another step towards its first interest rate cut in four years as inflation eases.
Investors are wondering whether the Bank of England will signal a rate cut in June, the same date the European Central Bank has signaled it will lower borrowing costs.
The euro settled at 1.0743 against the dollar.
