The dollar was supported on Wednesday by expectations of a US tax overhaul while a sharp rise in German bond yields helped to underpin the euro.
The House of Representatives approved the biggest US tax overhaul in 30 years on Tuesday, according to Reuters.
The dollar edged up 0.1 per cent to 112.95 yen, having pulled away from Friday’s low of 112.035, with last week’s high of 113.75 seen as its next target.
But gains in the dollar were limited as many market players looked to the Bank of Japan’s two-day policy meeting ending on Thursday.
The BOJ is widely expected to keep its short-term interest rate target at minus 0.1 per cent and a pledge to guide 10-year bond yields around zero per cent.
The US 10-year Treasury yield stood at 2.450 per cent in Wednesday’s Asian trade.
Higher euro zone yields underpinned the euro, which inched up 0.1 per cent to $1.1847, after rising 0.5 per cent on Tuesday.
Against the yen, the euro stood at 133.79 yen, not far from strong resistance levels around 134.50.
Elsewhere, the Canadian dollar stood at C$1.2873 to the US dollar after having hit a five-month low of C$1.2920 on Tuesday.
