The U.S. dollar pared losses against the yen on Thursday, but was still on track to notch its biggest daily loss against the Japanese currency in eight months, after U.S. consumer spending data provided some optimism on the U.S. economic outlook.
The dollar was last down 3 percent against the yen at 108.1 yen after the Bank of Japan's surprise decision not to further ease monetary policy. The greenback's last level against the yen was up from its earlier 10-day low of 107.93 yen.
The euro was last down 2.9 percent against the yen at 122.71 yen, also after hitting a 10-day low of 122.56 yen.
Analysts said U.S. data showing consumer spending increased at a 1.9 percent rate in the first quarter was better than some market participants were expecting and helped the dollar pare losses against the yen.