The dollar rose to nine-month highs around ¥108.30 in Tokyo trading Friday, reflecting anticipation for a widening of Japan-U.S. interest rate gaps.

At 5 p.m., the dollar stood at ¥108.27, up from ¥107.15 at the same time Thursday. The euro was at $1.1949, down from $1.2052, and at ¥129.38, up from ¥129.14.

In overseas trading, the dollar climbed to around ¥107.90, as market participants learned that U.S. Federal Reserve Chairman Jerome Powell failed to make strong comments against rising U.S. long-term interest rates at an online event on Thursday.

After falling to around ¥107.80 in the morning of Tokyo trading, weighed down by profit-taking and position-adjusting selling by Japanese exporters, the U.S. currency climbed above ¥108 in the afternoon, thanks to the Nikkei stock average’s resilience.

In late trading, the greenback firmed to around ¥108.30, after foreign investors moved to sell the yen in the wake of Bank of Japan Gov. Haruhiko Kuroda’s remarks suggesting a cautious stance about widening the tolerable range of fluctuations of 10-year government bond yields.

The course of the dollar-yen rate has been determined by moves of the key U.S. 10-year interest rate.

“The dollar is expected to rise even further as market players predict that (U.S.) interest rates will not stop climbing,” an official at a Japanese bank said.

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