NEW YORK : The dollar slipped back against the euro Friday, after a weaker-than-expected US first quarter growth estimate and as fears eased of military escalation over Syria’s alleged use of chemical weapons. Meanwhile, the yen pushed higher after the Bank of Japan held steady on its stimulus program and said economic growth was pulling out of stagnation. The euro edged higher to $1.3029 at 2100 GMT from $1.3009 late Thursday.  The dollar fell to 97.99 yen from 99.29 yen, while the euro dropped to 127.76 yen from 129.16.

The euro had fallen Thursday on worries that the Washington’s acknowledgment of possible chemical weapons use by the Damascus regime would lead to US military intervention in the conflict.

But President Barack Obama slowed the pace of escalation Friday by promising a “vigorous investigation” into the allegations.

Meanwhile, US growth for the January-March quarter came in at 2.5 percent in the January-March quarter, a solid rebound from the previous quarter but slower than many economists had predicted.

That firmed expectations that the Federal Reserve was not likely to tighten monetary policy in the near future, as government spending cuts and higher payroll taxes continue to restrain growth.

Even so, traders are now waiting to see what hints come from the Fed’s two-day policy board meeting beginning Tuesday, said David Song of DailyFX.

“We may see a greater argument to scale back on quantitative easing as the US economy gets on a more sustainable path,” said Song.

“Indeed, the central bank may adopt a more neutral to hawkish tone for monetary policy as the recovery gradually gathers pace.”

In Japan, the central bank held off announcing any new policy measures after its first meeting since unveiling a huge stimulus package this month.

The Bank of Japan said its policy board was unanimous in voting to stand pat for the moment, while it separately forecast 2.9 percent growth for the fiscal year to March 2014, predicting inflation to pick up to 0.7 percent.

But current figures showed the challenge of deflation remains: Friday data for March showed core consumer prices, which excluded volatile food prices, fell 0.5 percent on-year.

Meanwhile the British pound continued to gain on fresh optimism for economic growth, reaching $1.5474 from $1.5430 late Thursday.

And the dollar edged lower against the Swiss franc, moving to 0.9425 francs from 0.9448 francs.