By James Ramage

The dollar gained against the yen Monday as calmer markets reduced demand for the haven Japanese currency and as traders prepared for the arrival of the last significant U.S. economic numbers for the year.

The dollar rose 0.4% to 120.03 yen, the highest in two weeks, in light trade.

The yen's modest loss reflects an easing of tension in financial markets as the holidays approach. For much of December, the yen had strengthened against the dollar as plummeting oil prices pounded commodity-based economies and emerging-market assets, particularly the Russian ruble, sending investors into assets perceived to keep their values in uncertain times.

"For [the dollar-yen pair], we saw a bit of a pullback earlier this month," said Chris Gaffney, senior market strategist at EverBank Wealth Management. "But people have seen good price levels and maybe wanted to get back in before the end of the year."

The bulk of the week's U.S. economic data arrives Tuesday, including U.S. durable goods orders, the final revision to gross domestic product in the third quarter and the University of Michigan's consumer sentiment index and personal spending and income data. Most numbers are expected to rise from their most recent figures.

But with fewer market participants and lighter trading volumes expected this holiday week, the dollar is largely expected to trade in tight ranges to the yen and the euro, said Carl Forcheski, director of corporate currency sales at Societe Generale.

"The dollar rally won't reassert itself until next year," he said. "And it should be subdued then, because people have been pricing in the Fed's move. The Fed is preparing the markets for a June liftoff."

In other trade, the euro traded flat against the dollar at $1.2226, rising slightly from a new 28-month low of $1.2216 reached earlier in the Americas session.

Write to James Ramage at james.ramage@wsj.com