"Risk appetite is certainly more constructive now," Osborne said.
The Japanese currency still looked set to gain about 1.9 percent against the dollar for the quarter to clinch its third straight quarterly gain.
The dollar index, which measures the greenback against a basket of six major currencies, was last little changed at 95.505.
While the euro recovered, it was still failing to rally partly on fears that Deutsche Bank's woes could resurface. The bank admitted it had an image problem with investors on Thursday.
One large hedge fund in Asia had pulled out its collateral from Deutsche amounting to $50 million in the last two days, while another fund with a "smallish amount" with the bank was monitoring the situation closely and had not pulled out, people familiar with the matter told Reuters on Friday.
"Deutsche Bank has serious issues," said Joseph Trevisani, chief market strategist at WorldWideMarkets in Woodcliff Lake, New Jersey.
China's yuan was steady at 6.6689 to the dollar. The currency will formally join the U.S. dollar, the euro, the Japanese yen and the British pound as a global reserve currency on Saturday.