The yen dropped to a two-month low against the dollar as a looming Federal Reserve interest-rate increase this week contrasts with the Bank of Japan's reluctance to wind back stimulus.
Japan's currency headed for a fourth day of losses, while the Bloomberg Dollar Spot Index edged higher along with Treasury yields.
The Fed will raise its benchmark for a third time this year on Wednesday and update its dot plot projections for policy rates.
USD/JPY rose less than 0.1% to 112.83 after climbing to 112.98, highest since July 19.
AUD/USD falls 0.1% to 0.7242; NZD/USD drops 0.2% to 0.6634.