The dollar rose on Monday from its biggest weekly fall in more than seven years against the yen but softened against other major currencies, in particular the euro, which was helped by stronger German manufacturing data.
Worries over Japanese policymakers' inability to stem the yen's rise pushed the dollar to an 18-month low of 106.14 yen in the first hours of Asian trade. It later bounced to 106.78 yen, up 0.4 percent on the day.
Finance Minister Taro Aso was quoted in Japanese media over the weekend as saying he viewed the yen's strength as "extremely concerning," stoking speculation the Bank of Japan might intervene to stem the currency's rise.
"It contributed to the performance of the yen, while we are seeing the dollar softer against other currencies," said Eric Viloria, currency strategist at Wells Fargo Securities in New York.