The yen JPY= was also in the spotlight, holding some distance away from a 40-year trough after suspected coordinated intervention by various authorities in the previous session, as the Bank of Japan (BOJ) stood pat on rates on Friday.
The yen JPY= was roughly 0.7% weaker at 160.66 per dollar, briefly slipping after the BOJ kept rates on hold on Friday, with focus now on BOJ Governor Kazuo Ueda's press conference later in the day.
"As an initial reaction, the yen weakened briefly because there was no strong message regarding the exchange rate. However, this was only a momentary reaction and has not developed into a broader trend," said Hirofumi Suzuki, chief FX strategist at SMBC.
"Board member Takata's dissent in favor of another consecutive rate hike was not widely anticipated by the market."
The yen had already been sliding prior to the decision, as traders tested Tokyo's resolve after Japan was suspected to have intervened in the foreign exchange market in New York hours on Thursday, leading to a 2.4% surge in the currency.
In a rare move, South Korea's foreign exchange authorities also conducted dollar-selling intervention on Thursday, while the Nikkei reported that U.S. authorities also conducted so-called "rate checks", pointing to a possible joint intervention.
A trader, who declined to be named because they were not authorised to speak to the media, said dollar/yen liquidity was thin on Friday due to nerves over further action from authorities.
The latest bout of strength in the yen in turn kept pressure on the dollar, leaving the euro EUR= perched near an over one-month high at $1.1512, while sterling GBP= bought $1.3449, holding to most of Thursday's 0.7% gain.
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