The dollar index, which measures the greenback against a basket of six other currencies, was up 0.1% at 93.835, with moves seen limited ahead of next week’s policy-setting meeting by the Federal Reserve.
The Nikkei index closed down 0.96 percent at 28,820.09 points, while the broader Topix index fell 0.7 percent to 1999.66 points.
Australia’s central bank decided earlier today not to buy central government bonds for the stimulus program even though yields were well above its 0.1% target.
Gold prices consolidated just above $1,800 an ounce on Thursday, supported by lower yields on US bonds, while investors focus on how central banks are responding to higher price pressures.
Brent crude futures fell $1.58, or 1.9 percent, to $83 a barrel at 0502 GMT, after the price fell to $82.32 earlier on Thursday and after falling 2.1 percent in the previous session.
US West Texas Intermediate crude fell $1.39, or 1.7 percent, to $81.27 a barrel, its lowest level in two weeks, after dropping 2.4 percent on Wednesday.