The Bank of Japan (BOJ) left interest rates steady as expected this morning.
News that only one board member voted against the decision pushed down the yen and bond yields on views that an August rate rise may be less likely.
But the falls were limited as many in the market still expect the central bank to raise the overnight call rate target to a 12-year high of 0.75 per cent as early as next month.
Atsushi Mizuno, regarded as one of the most hawkish members of the nine-strong board, was the only one to go against the decision to keep the key policy rate unchanged at 0.50 per cent for a fifth straight month.
The dollar initially jumped to around 122.40 yen after the announcement, while the euro climbed to an intraday high of 168.35 yen.
September Japanese government bond futures inched up to 131.77 from 131.65 before the announcement, while the benchmark 10-year bond yield fell to 1.895 per cent from 1.910 per cent before the news.
The BOJ has kept policy on hold since raising the overnight call rate target to 0.50 per cent in February.