The dollar has climbed past the 114 yen level for the first time in a year and four months amid growing skepticism about Japan's economic recovery.

The dollar has moved steadily higher in recent weeks, taking advantage of a gloomy economic assessment provided by the Bank of Japan in its latest quarterly "tankan" survey on business sentiment.

Although worries remain over slowing U.S. economic growth, the recent shift in U.S. monetary policy is also working in the dollar's favor.