On Thursday, the greenback is losing ground against most of its global counterparts as investors await the release of the US Non-Farm Payrolls report.
The US Dollar Index (DXY), which tracks the greenback against a basket of global currencies, fell 0.07% to 104.15.
Despite the dollar's weakness, the USD/JPY pair rose 0.03% to 151.73, mainly due to the wide gap between the Bank of Japan's and the Federal Reserve's interest rates.
The BoJ abandoned its negative interest rate policy in March, but short-term rates in Japan remain close to zero while US rates are above 5%, according to Reuters.
At the same time, the pair's rise is limited by the Japanese authorities' statements about intervention in case of further yen collapse.
"If USD/JPY breaks above the 152 level, some intervention is likely to be needed," said Vishnu Varathan, Chief Asia Economist at Mizuho.
The EUR/USD was up 0.17% at 1.0853, while the GBP/USD was down 0.13% at 1.2668.
The latest Eurozone inflation data increased the chances of a June interest rate cut by the European Central Bank.
On Wednesday, Fed Chairman Jerome Powell said that incoming economic data will guide the decision on future monetary policy.
"The speech generally confirmed that the Fed is on track to cut rates this year, and the timing will be data-driven. We believe the Fed is likely to be confident enough to start cutting rates by July," ANZ analysts said.
The AUD/USD and NZD/USD rose 0.44% and 0.47% to 0.6592 and 0.6035, respectively, in response to rising expectations for a Fed rate cut in June.
It should be noted that the markets are expecting a rate cut from the Reserve Bank of New Zealand in August and from the Reserve Bank of Australia in November.
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