Investing.com - The yen weakened on Friday after a summary of Bank of Japan minutes was released and wage data fell short of expectations.
AUD//USD traded at 0.7050, up 0.56%, while USD/JPY changed hands at 118.20, up 0.45%.
Monetary policy makers in Japan said steps take in the December Bank of Japan board meeting were adjustments to policy, not easing, as downside risks were noted, but not seen as heightened, according to a summary of minutes released on Friday.
"While the supplementary measures decided this time are not additional monetary easing, they enable the bank to steadily continue with quantitative and qualitative monetary easing (QQE) through smoother asset purchases and, if judged necessary, to make appropriate adjustments in a timely manner," the summary said.
"Since downside risks to the outlook for economic activity and prices have not increased, the bank should maintain the current guideline for money market operations."
The BoJ will release the full minutes of the December meeting on Feb. 3.
In Australia, the AIG construction index came in at 46.8 for December, below the previous month's level of 50.7. A drop below 50 signals contraction.
Also in Australia retail sales for November rose 0.4% as expected, while Japan average cash earnings were flat, with a 0.7% gain seen, and overtime pay came in at 1.10%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.35% to 98.64.
Overnight, the dollar remained broadly lower against the other major currencies on Thursday, after data showed that U.S. jobless claims fell less than expected last week and as fears over the outlook for China’s economy continued to support demand for the safe-haven yen and Swiss franc.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 1 decreased by 10,000 to 277,000 from the previous week’s total of 287,000, which was the highest since mid-July.
Analysts expected jobless claims to fall by 12,000 to 275,000 last week.
The greenback had slightly weakened after the minutes of the Federal Reserve’s December meeting showed that some officials expressed concerns that inflation could remain at stubbornly low levels, even as they decided to hike interest rates.
Meanwhile, demand for the safe-haven yen remained supported after the People's Bank of China set its official yuan midpoint rate lower compared with Wednesday's fix. It was the largest daily drop in the midpoint rate since last August, when an unexpected almost 2% devaluation of the currency sparked a broad based selloff in markets.