The US dollar rose against the Japanese yen by 0.5% to 152.70, after data showed that wholesale inflation in Japan rose for the third straight month in November, as companies faced higher labor and raw material costs.
Markets are divided on whether the Bank of Japan will raise interest rates again, ahead of the two-day policy meeting that ends on December 19.
The central bank has raised interest rates twice this year due to rising inflation and wages, although momentum on both has slowed somewhat in recent months.
The dollar index, which tracks the greenback against a basket of six other currencies, rose 0.3% to 106.410.
The dollar was in demand on Wednesday ahead of a highly anticipated US inflation reading that may provide clues to the pace of interest rate cuts by the Federal Reserve.
The Fed has cut interest rates by 75 basis points since September and markets are now anticipating another 25 basis point cut at the December 17-18 meeting.
