Sterling traded higher after recovering knee-jerk losses following the Bank of England's decision to downshift to a quarter point rate hike on Thursday.
The U.S. dollar index , which gauges the currency against a basket of six counterparts, edged 0.06% lower to 102.39 in Asia.
On Thursday, it had pushed to the highest since July 7 at 102.84 at one point, but lost steam later in the day with the monthly nonfarm payrolls report looming on Friday.
The dollar slipped slightly to 142.40 yen , as long-term Treasury yields - which the currency pair tends to track closely - retreated from Thursday's nearly nine-month high at 4.198% in Tokyo trading.
At the same time, "unless or until what's been happening with Treasury yields reverses, there's no meaningful prospect of dollar-yen coming down here, unless we see a very dramatic deterioration in risk sentiment," he added.
Persons:
Dado Ruvic, Sterling, Kristina Clifton, BoE, Ray Attrill, Attrill, Kevin Buckland, Brigid Riley, Jacqueline Wong
Organizations:
REUTERS, Bank of, of, U.S, Commonwealth Bank of Australia, National Australia Bank, European Central Bank, Thomson
Locations:
China, Asia, Thursday's, Tokyo, U.S