The dollar hit a six-week high versus the yen and held near one-month peaks against the euro on Thursday after U.S. inflationdata increased expectations the U.S. central bank may raise interest rates more aggressively.
Dealers said the dollar was still being buoyed by data on Wednesday showing U.S. consumer prices rising at the fastest year-on-year pace since 2002.
The figures had particular resonance, coming just a day after the U.S. central bank raised interest rates for a seventh consecutive time and warned of inflationary pressures ahead.
"People are revising higher their expectations for U.S. interest rates which will keep the dollar supported in the near term," said Adam Myers, currency strategist at Societe Generale in London.
The dollar was up 0.3 percent at 106.35 yen at 3:45 a.m. EST, on track for a sixth straight day of gains.
The euro was a touch firmer at $1.3014 having fallen to a five-week low below $1.2960 on Wednesday. The single European currency has now shed more than six cents from record high scaled last December.
So far this year, expectations of strong U.S. growth and higher U.S. interest rates have helped the dollar arrest a three-year slide on worries about the United States' ability to fund its swelling current account and budget deficits.