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FOREX-Dollar extends gains on dramatic Trump turnaround rally

* Dollar rises to nearly 4-month highs against yen

* Investors still betting on Fed rate hike in December

TOKYO, Nov 10 (Reuters) - The dollar extended gains in Asian trading on Thursday, rebounding on a rise in U.S. Treasury yields on higher inflation expectations following Republican candidate Donald Trump's victory in the presidential election.

Prices fell on benchmark 10-year Treasury notes and 30-year bonds, pushing yields to their highest levels in 10 months on Wednesday in a dramatic turnaround from a massive selloff in risk assets and jump in safe-haven bonds on Trump's stunning upset.

Speculation in markets that Trump would enact protectionist trade policies and put upward pressure on U.S. wages and boost inflation helped lift U.S. bond yields.

The dollar was last up 0.1 percent at 105.72 after rising as high as 105.95, its highest since July 27. It had fallen as low as 101.19 yen on Wednesday.

"U.S. yields were part of the reason for the dollar's rise, but there was also a lot of 'buy the rumour, sell the fact' and unwinding of the 'Trump trade,' after it played out, and a return to fundamentals," said Mitsuo Imaizumi, chief currency strategist at Daiwa Securities in Tokyo.

Investors still expect the U.S. Federal Reserve to raise interest rates at its December policy meeting, after being on hold since hiking rates in December 2015.

About 85 percent of 62 respondents in a survey taken on Wednesday after the shock vote said the Fed would go ahead with a rate rise, its first in a year. Forecasts came from several of the Wall Street primary dealers as well as European analysts.

Trump stated during the campaign that he would spend more on developing U.S. infrastructure, which could increase the U.S. budget deficit and Treasury supply. Trump also will take office with Republican majorities in both chambers of the U.S. Congress that could help him implement his legislative agenda.

Minneapolis Federal Reserve Bank President Neel Kashkari on Wednesday said he sees continued sluggish growth ahead for the U.S. economy, unless lawmakers and the president "get going" on policies to boost productivity and population.

The euro spiked as high as $1.1299 on Wednesday, its highest since Sept. 8, before tumbling to $1.0902. It last stood at $1.0925, up 0.2 percent.

The dollar index, which tracks the greenback against a basket of six major rivals, was at 98.537 after rising to an overnight high of 98.704, its highest since Oct. 28.

(Reporting by Tokyo markets team; Editing by Shri Navaratnam)