The greenback was last 0.31% higher at 135.42 yen, and earlier rose to 135.585 yen, its highest since July 28, after surging 1.57% in the previous session, its biggest single-day gain since June 17.
The US Federal Reserve concludes a two-day meeting on Wednesday and markets are priced for a 75-basis-point (bps) rate hike, with about a 9% chance of a 100 bps hike.