The yen was held at the mercy of soaring U.S. Treasury yields on Friday ahead of a closely watched rate decision by the Bank of Japan (BOJ), while the dollar stood near a six-month peak on the prospect of higher-for-longer U.S. rates.

The Japanese currency was last marginally lower at 147.6 in early Asia trade, languishing near the previous session's more than 10-month low of 148.465.

The BOJ is due to announce its interest rate decision later on Friday at the conclusion of its two-day policy meeting, capping off a week packed with central bank policy decisions, and expectations are for the BOJ to stand pat on its ultra-easy monetary settings.

The yen was also kept under pressure as a result of elevated U.S. Treasury yields, which scaled multi-year highs in the previous session as markets reeled from a hawkish pause by the Federal Reserve on Wednesday.

The U.S. dollar likewise rode Treasury yields higher and against a basket of currencies , the greenback touched a more than six-month high of 105.74 in the previous session. The index was last steady at 105.39.

Against a stronger dollar, the Aussie fell 0.1% to $0.6410 and was headed for a weekly loss of about 0.3%, reversing some of its gains made last week.

The euro dipped 0.07% to $1.0655, having fallen to a six-month low of $1.0617 in the previous session.

Sterling was meanwhile 0.02% lower at $1.2293, having similarly slid to a roughly six-month low of $1.22305 on Thursday, after the Bank of England (BoE) halted its long run of interest rate increases a day after Britain's fast pace of price growth unexpectedly slowed.

Source : Reuters