The U.S. currency also climbed versus the euro after the European Commission said economic confidence in the region fell last month to the lowest in almost two years, giving policy makers more reason to avoid raising interest rates. The U.S. dollar index, which measures the value of the currency against those of major trading partners, rose for the first time since Dec. 31.
The dollar advanced as much as 1.1 percent to 109.73 yen, the most since Dec. 14, and was trading at 109.22 as of 8:04 a.m. in New York. It climbed to $1.4713 per euro, the most since the beginning of 2008, from $1.4743 at the end of last week. The dollar may trade as high as 111.5 to the yen, Honda predicted.
The U.S. currency gained 0.6 percent to 1.1139 Swiss francs as the Sonntag newspaper reported Credit Suisse Group may add 2.5 billion francs ($2.3 billion) to writedowns in the fourth quarter. It traded at $1.9733 to the U.K. pound, after earlier rising to the highest since August.
The U.S. Dollar Index traded on ICE Futures in New York rebounded to 76.085 today, from as low as 75.42 Jan. 4, which was the lowest since Nov. 29. The index values the currency's performance against those of six of its biggest trading partners.
The difference in yields, or spread, between U.S. Treasury 10-year notes and similar-maturity Japanese government debt widened to 2.41 percentage points, from 2.39 percentage points on Jan. 4. A widening gap boosts the allure of dollar-denominated assets relative to those in Japan.
The dollar rebounded from a two-month low against the euro as the daily stochastic chart, a measure of the price of a security relative to its highs and lows, showed its decline was excessive.