The dollar rose against the yen on Thursday, spurred by a jump in oil prices that put upward pressure on U.S. inflation expectations and pushed traders to increase their outlook on a rate hike from the Federal Reserve.
Oil prices surged more than 4 percent on Thursday after U.S. inventory data showed crude stocks dropped by the most since January 1999, as imports fell due to Tropical Storm Hermine last week.
The dollar rose 0.76 percent against the yen to 102.48. The currency pair is generally considered the most vulnerable to rising U.S. interest rates and inflation expectations.
The dollar had fallen as low as 101.42 yen in early trading as expectations the Bank of Japan would expand its monetary stimulus this month faded after a Bank of Japan deputy governor gave few fresh clues on the bank's thinking.