The dollar soon came off the fresh high against the yen as traders took the opportunity to book profits on its surge of nearly 3 yen last week.
Still, until the Federal Reserve signals otherwise and until the cost of borrowing in Europe and Japan starts rising, prospects for even higher US rates will keep buoying the dollar, traders said.
"Everbody is a bit nervous about the speed of the dollar's recent rally. Yet, it hasn't seen serious profit-taking," said Mitsuru Sahara, a senior trader at UFJ Bank.
"The difference in interest rates is what's moving the market."
The dollar was around 117.95 yen after climbing as high as 118.38 yen, its highest level since late August 2003.
The euro was little changed at $1.1810. It fell as low as $1.1802, according to electronic trading platform EBS, brushing against the 18-month low of $1.1801 marked on Friday.
The single European currency's fall was seen kept in check by euro buying to protect an option barrier around $1.18.
The euro had tumbled 1 percent on Friday after it failed to pierce a key technical and psychological level at $1.20 in the wake of the US payrolls report. The fall accelerated after the euro broke through the year's low around $1.1870.
The data showed the US economy created 56,000 jobs in October, below the median forecast in a Reuters survey for an increase of 100,000.
The euro was buying around 139.30 yen, down about 0.3 percent.
The euro was also still smarting after European Central Bank President Jean-Claude Trichet gave little indication after a policy meeting last week that a change in euro-zone rates was in the offing.
The ECB kept rates at 2 percent, as expected. But some in the market were looking for clues that the central bank was close to its first hike in over two years after a run of upbeat economic data and warnings from ECB officials about inflation risks.
The market was eyeing whether any comments on rates would be offered after a meeting of euro-zone finance ministers and the ECB later in the day.
The Fed boosted the cost of borrowing last week for the 12th straight meeting, taking its key rate to 4 percent, and suggested it would keep raising at a measured pace.
The dollar has rallied around 13 percent against the euro and 15 percent versus the yen this year as interest rates continue to rise in the United States while they stall in the euro zone and Japan.
The Bank of Japan has held its benchmark rate at near zero percent and is not seen raising it until next year.
Concerns about stalled rates in Australia helped to keep the Aussie in sight of a one-year low against its US counterpart.
The Reserve Bank of Australia said on Monday that underlying inflation would stay within its target zone next year, suggesting it was in no rush to raise the cash rate of 5.5 percent.
The Aussie was buying around 73.30 US cents hovering above the one-year low of 73.11 cents hit on Friday.