The Japanese yen trimmed its losses on Friday after reports emerged that the Bank of Japan had conducted a "rate check" in the foreign exchange market, following an initial slide triggered by the central bank's failure to provide clearer guidance on future interest rate hikes.

As of midday in New York, the yen traded 0.6% weaker at 156.83 per US dollar, having earlier dropped as much as 1.3% during the session. The currency's decline moderated after the Nikkei reported that the BOJ had queried market participants about prevailing exchange rate levels, though the report did not cite its sources.

The move suggests the central bank is closely monitoring currency volatility, even as it refrained from offering more concrete signals on its monetary policy trajectory in its latest communications.