The dollar continued its climb against the yen on Thursday amid expectations that Japan will ease monetary policy and set a higher inflation target under its new prime minister.
The dollar stood at 86.09 yen at about 2200 GMT, up from 85.62 Wednesday.
Newly elected Prime Minister Shinzo Abe and his Liberal Democratic Party swept to power on promises to fix the economy with big government spending and to pressure the central bank for more aggressive policy action.
On Thursday, former premier Taro Aso, Abe's pick as his deputy and finance minister, told finance officials the Bank of Japan had been "slow to react" on tackling the deflation that has plagued Japan's economy for years.
"The mere possibility of a more aggressive monetary policy measures such as a higher inflation target has driven the yen to its lowest levels since 2010," according to BK Asset Management.
The euro was also stronger against the yen, at 113.97 yen at about 2200 GMT, compared to 113.19 yen a day earlier.
The common European currency also increased against the greenback, at $1.3235 around 2200 GMT, up from $1.3223 at the same time Wednesday.
In other currencies, the dollar edged slightly lower to 0.9132 Swiss francs, while the pound fell to $1.6099.