The dollar pared declines against the Japanese yen on Thursday in the aftermath of a government report showing new U.S. claims for unemployment benefits fell slightly more than expected last week.

The dollar was last down 0.3 percent at 87.12 yen JPY=, compared with 86.90 yen before the release of the report. (Reporting by Vivianne Rodrigues; Editing by Theodore d'Afflisio)