Sterling was largely steady on Thursday ahead of a Bank of England interest rate meeting, while the dollar edged up slightly and moves were limited as traders waited for fresh market stimulus.
Currencies traded in tight ranges after a holiday in the United States, with traders awaiting not only the Bank of England's decision but also decisions from the Swiss and Norwegian central banks.
The pound was last at $1.2718 after posting slight gains in the previous session, while the euro was also steady at $1.0743.
The dollar rose 0.04 percent against the yen to 158.14, not far from the Japanese currency's lowest level in more than a month at 158.255 per dollar hit last week.
Against a basket of six major currencies, the dollar rose 0.05 percent to 105.26, heading towards a one-month high hit last week at 105.80.
The Bank of England is widely expected to keep interest rates unchanged on Thursday, and focus will be on any signals on when the monetary easing cycle will begin.
Data on Wednesday showed that inflation in Britain returned to its 2 percent target for the first time in nearly three years in May, but the details of the report indicated that underlying price pressures remained, ruling out the possibility of an early interest rate cut.
But the Swiss National Bank (SNB) is expected to cut its key interest rate by 25 basis points for a second straight meeting on Thursday, as a strong franc and low inflation support the case for favorable conditions for monetary easing.
The Swiss franc was last at 0.8838 against the dollar, hovering near a three-month high.
It also held near a four-month high of 0.94785 per euro hit in the previous session, with the euro still under pressure from political unrest in France and the wider euro zone.
The Australian dollar rose 0.03 percent to $0.66745, while the New Zealand dollar rose 0.06 percent to $0.61345.
Data on Thursday showed New Zealand’s economy grew faster than expected in the first quarter but remained fragile. That did little to change market views on the country’s monetary policy outlook. A Reuters poll last month forecast the country would begin cutting interest rates by the end of the year.
