The yen lost some ground after the Bank of Japan on Friday kept ultra-low interest rates and forecast that inflation will slow later this year - reiterating its dovish stance that runs counter to hawkish policies taken by peers globally.

As widely expected, the BOJ maintained its -0.1% short-term interest rate target and a 0% cap on the 10-year bond yield set under its yield curve control (YCC) policy.

The yen fell broadly following the decision and hit a fresh 15-year low of 153.97 per euro , extending a more than 1% slide in the previous session.

Against the U.S. dollar, the Japanese currency was last roughly 0.25% lower at 140.66 yen .

Investors are now awaiting Governor Kazuo Ueda's press conference (0630 GMT) for his views on inflation, the policy outlook and the yen's renewed declines.

Elsewhere, the euro was poised for its best week in months after the European Central Bank (ECB) raised borrowing costs to a 22-year high and signalled further rate hikes to come.

That and some soft U.S. economic data saw the dollar fall broadly as traders scaled back their bets on how high U.S. interest rates would need to rise.

The euro stood near a one-month high at $1.0942, having surged over 1% on Thursday following the rate hike and hawkish forward guidance from the ECB.

ECB President Christine Lagarde told a press conference that another rate hike in July was highly likely and that the central bank still has "ground to cover" to stave off high inflation.

Sterling rose to an over one-year peak of $1.2794 in early Asia trade and last bought $1.2784, as traders similarly ramped up bets that the Bank of England is likely to raise interest rates for the 13th meeting in a row next week.

Source : Reuters