The dollar marched higher on Monday, racking up fresh multi-month peaks against both the euro and the yen on expectations the U.S. interest rate advantage will grow, while cautious company outlooks stalled European shares. Oil prices retreated as the dollar rose, with warmer temperatures in the northern hemisphere helping to curb demand for heating oil and push U.S. light crude below $60 a barrel. The dollar climbed to an 18-month peak against the euro and hit a two-year high against the yen for the sixth session running as the yield appeal of the dollar continued to grow following a 12th straight rise in U.S. interest rates last week. The dollar has gained more than 9 percent against the yen in the past two months as the market has revised how far and how fast the Federal Reserve will have to increase rates to keep a lid on inflation. "With the U.S. offering such a yield premium and with momentum in euro/dollar downwards -- yield shifters are probably saying 'why fight it?'," Rabobank senior proprietary trader Lee Ferridge said. The dollar hit a peak of 118.64 yen, its highest since late August 2003, before profit-taking dragged it back below 118. The euro touched a low of $1.1780, extending a loss of more than 1 percent on Friday made after the single currency failed to break through technical resistance around $1.20 in the wake of weaker-than-expected U.S. jobs data.