The dollar kept within sight of an eight-week high versus the euro and neared a 4-1/2 year peak against the yen on Monday, after robust US jobs data last week trimmed expectations for a Federal Reserve interest rate cut this year.
The low-yielding yen remained under broad pressure as investors continued to seek higher-return assets in carry trades - helping sterling and the Australian and New Zealand dollars to fresh multi-year peaks.
A tumble of more than 8 percent in China's benchmark equity index gave the yen brief respite as investors trimmed carry trade positions on concerns over risk.
But unlike late February, when a sell-off on the Shanghai bourse sparked slides in global equity markets and liquidation of FX carry trades, repercussions were short-lived.
Instead the focus returned to signs of strength in the US economy - illustrated by Friday's news of 157,000 jobs being added in April. But with the European Central Bank seen raising rates to 4 percent on Wednesday and possibly signalling further hikes, investors were reluctant to push the dollar much higher.
"What the market is talking about at the moment is a more aggressive ECB tightening path and I think that's probably coming up against the stronger data out of the US on Friday and that's why we haven't seen euro/dollar move very far this morning," said Adam Myers, currency strategist at UBS.
By 1111 GMT, the dollar was at $1.3465 per euro, a touch softer on the day but within reach of an eight-week high hit on Friday at $1.3391.
The dollar was buying 121.92 yen, close to a four-month high of 122.14 yen set on Friday, and not far from January's 4-1/2 year high struck around 122.20 yen.
The euro was steady against the yen at 164.25, having earlier matched last week's all-time high of 164.33 yen according to Reuters data. After Friday's deluge of US data, investors are looking ahead to a series of central bank policy meetings later this week.
ECB President Jean-Claude Trichet said on Monday that there is no time for complacency in the eurozone despite encouraging growth - supporting market expectations of a hike this week and at least one more move by year-end.
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