The dollar steadied against the yen on Tuesday, keeping the previous day's gains as market conviction grows that the dollar's yield advantage won't weaken even if the Bank of Japan ends its ultra-easy monetary policy. The dollar jumped about 0.5 percent against the euro and the Swiss franc, extending gains as U.S. bond yields rose to 21-month highs. "Long-term U.S. interest rates have risen as the market has started to price in the likelihood that the Federal Reserve will keep raising rates beyond 5 percent," said Masamichi Koike, forex manager at Sumitomo Mitsui Banking Corp. Most market players expect the Fed to raise the key overnight rate to 5 percent from the current 4.5 percent by the middle of the year, and some forecast a push even higher if economic data comes in above expectations. The dollar drew support after St. Louis Fed President William Poole told Reuters in an interview late on Monday that the central bank might have to raise rates further if economic growth was consistently strong. The dollar got a lift on Monday from economic data that showed a smaller-than-expected decline in February factory orders and upward revisions to January's durable goods orders. By 0645 GMT, the dollar was changing hands at 117.55 yen , little changed from the level in late U.S. trade on Monday, when it rose nearly 1 percent. The euro fell to around $1.1965 from around $1.2015 in late U.S. trade. The European currency quickly returned to its rough $1.18-$1.20 range of the past few weeks after spiking to a one-month high of $1.2093 on Monday. "The euro doesn't look like getting out of its recent range," said Koike at Sumitomo Mitsui. Japanese exporters were detected selling the euro against the yen. That pushed the euro down to around 140.70 yen from 141.30 yen The dollar rose to around 1.3040 Swiss francs from around 1.2985 francs.