The dollar traded at its highest level against the yen since late October on Monday as investors bet higher interest rates would continue to support the U.S. currency. Positive sentiment toward the dollar was reinforced last week, when the currency managed to recover quickly from an initial fall after a poor U.S. jobs report.
Over the weekend, St. Louis Federal Reserve President William Poole gave the dollar another boost, suggesting there was a risk of higher inflation.
"Overall, everything is pointing toward a continued stronger dollar," said Ian Stannard, currency strategist at BNP Paribas in London.
"Data still points to robust growth in the U.S. despite the payrolls numbers being weaker than expected and the market's focus is shifting toward inflation."
The dollar was up 0.25 percent at 107.86 at 0730 GMT, having earlier risen as high as 107.94 yen -- its highest in over five months. The dollar was steady at $1.2898 per euro.
The dollar has risen more than 2 percent against the yen and more than 1.5 percent against the euro since the Fed suggested two weeks ago that it could raise interest rates faster than the current moderate pace if inflation heated up.
The Fed has raised rates by a quarter percentage point seven times since June, bringing its key funds rate to 2.75 percent.