The US dollar continued strengthening in the European session after exhibiting a horizontal movement during the previous session.
The dollar index, which measures the strength of the greenback, is trading higher around the 101.00 price level against most major currencies.
Meanwhile, the yen fell further towards the 142.00 level, even after data showed core inflation across Japan rose 3.3% in June.
It was in line with market expectations, but remained above the Bank of Japan's (BOJ) target of 2%.
The main factor behind the drop was reports that the BOJ is likely to remain on its loose policy approach at next week's meeting.
Meanwhile, the Aussie and New Zealand dollars also edged lower, slipping to around 0.6750 and 0.6195 against the greenback respectively.
However, the euro is not seen to change much with the price seen to be stable at around 1.1130 against the US dollar.
The pound slipped slightly, failing to capitalize on a better-than-expected reading of UK retail sales data in June.
The meeting of the three central banks will decorate the trade next week, where the decision of the Federal Reserve (Fed) will be the main focus of investors.
For now, investors are still looking at expectations for a 25 basis point interest rate hike, but it is uncertain whether the Fed will implement another hike after that.
