The greenback also drew support from higher Treasury yields after a Financial Times report citing sources close to Federal Reserve Chair Kevin Warsh pointed to the potential for a September interest rate hike, depending on incoming data.
The monthly U.S. payrolls report, due later on Friday, could provide more clues on the Fed's rate path.
The dollar rose slightly to 158.505 yen in the Asian morning, after gaining 0.4% on Thursday, putting it on course to rise around 0.7% this week as it recovered from a bout of joint Japan-U.S. intervention that sent the U.S. currency tumbling from near a four-decade high above 163 yen on Thursday to a 13-week low of 155.20 on Monday.
Against the euro, the greenback edged up to $1.1521 after strengthening about 0.3% in the prior session.
The heightening inflation risks weighed on Treasuries, sending yields higher.
"USD was supported by higher oil prices (following) news that a deal between the U.S. and Iran to reopen the strait is further away than hoped," said Kristina Clifton, an economist at Commonwealth Bank of Australia.
She and other analysts also pointed to the FT report saying Warsh was open to a September hike if inflation data is strong, although Clifton added, "We expect the Fed to wait until December before starting a modest tightening cycle."
A divided U.S. central bank left rates unchanged last month, but Warsh said he was committed to bringing inflation down.
U.S. nonfarm payrolls are forecast to have risen by 80,000 last month after an increase of 57,000 in June, according to a Reuters survey of economists. The unemployment rate is expected to hold steady at 4.2%.
Against sterling, the dollar strengthened slightly to $1.3449.
The Australian dollar weakened a touch to $0.7029 and the kiwi dollar edged down to $0.5866.
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