The U.S. dollar briefly rose to a seven-and-a-half-month high of 145.07 yen in Tokyo on Friday, but wariness about a possible yen-buying intervention by Japanese authorities left investors reluctant to chase higher ground.

The U.S. dollar rose to its highest level since November after stronger-than-expected U.S. economic data fueled speculation about prolonged interest rate hikes by the Federal Reserve, but it soon retreated to the upper 144 yen range.

After the U.S. currency hit the psychological threshold in the morning, Japanese Finance Minister Shunichi Suzuki warned that Japan stands ready to respond "appropriately" to excessive volatility, describing recent currency movements as "rapid and one-sided."

The dollar also weakened as domestic exporters moved to buy the Japanese currency for settlement purposes, dealers said.

"Today is the end of the month and the end of the quarter, which are special days. Japanese export companies decided to sell the dollar after it reached a favorable level (against the yen)," said Yukio Ishizuki, senior foreign exchange strategist at Daiwa Securities Co.

The yen's depreciation has prompted vigilance about a possible intervention by the Japanese government, which conducted a yen-buying, dollar-selling operation for the first time in 24 years on Sept. 22 when the Japanese currency crossed the 145 line against the dollar.

But some dealers said the current situation does not warrant an intervention and Japanese authorities are unlikely to rush into yen buying.

"Last year, resource costs were quite high, which, combined with a weak yen, pushed up the prices of goods in Japan. But this time resource costs are actually falling, so the pain of a weak yen is not felt as much," said Ishizuki.

At 5 p.m., the U.S. dollar fetched 144.84-86 yen compared with 144.75-85 yen in New York and 144.31-33 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.0855-0857 and 157.23-27 yen against $1.0858-0868 and 157.30-40 yen in New York, and $1.0915-0917 and 157.52-56 yen in Tokyo late Thursday afternoon.

The yield on the benchmark 10-year Japanese government bond rose 0.015 percentage point from Thursday's close to 0.395 percent, tracking an overnight rise in long-term U.S. Treasury yields.

Tokyo stocks were weak throughout the day, with investors also awaiting key U.S. inflation data due out later in the day.

The 225-issue Nikkei Stock Average ended down 45.10 points, or 0.14 percent, from Thursday at 33,189.04. The broader Topix index finished 7.65 points, or 0.33 percent, lower at 2,288.60.

Decliners were led by pharmaceutical, land transportation and wholesale trade issues.

Chip-related shares saw downward pressure as investors locked in gains after the tech-heavy Nasdaq index ended flat overnight, with Tokyo Electron dropping 215 yen, or 1.0 percent, to 20,560 yen and Shin-Etsu Chemical down 19 yen, or 0.4 percent, at 4,768 yen.

But department store operator Takashimaya bucked the trend, becoming one of the top gainers on the Nikkei with a surge of 144 yen, or 7.7 percent, to 2,013 yen after it revised upward Thursday its profit forecast for the year ending February 2024, citing a recovery in inbound tourism and structural reforms.

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