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TOKYO: The dollar rose broadly on Friday as U.S. bond yields rose, while the euro sank after the European Central Bank´s decision to extend its debt-buying programme even as it cut the size of its purchases disappointed currency bulls.

The dollar index gained 0.1 percent to 101.230 following an overnight rise of nearly 1 percent. It was on track to gain 0.3 percent this week. The greenback was up 0.4 percent at 114.430 yen, coming within the reach of a 10-month high of 114.830 set last week.

The yen´s safe-haven appeal has diminished as Japan´s Nikkei hit a one-year peak as Wall Street reached a record high. The widening of U.S.-Japan interest rate differentials also supported the dollar, with the benchmark 10-year Treasury note yield rising to 2.445 percent.

The Treasury yield edged back towards a 1-1/2-year peak of 2.492 percent scaled last week following a rise in euro zone debt yields overnight.

Long-dated euro zone bond yields rose and the euro fell on Thursday after the ECB said it would reduce its monthly asset buys to 60 billion euros $63.58 billion) as of April, from the current 80 billion euros, but as it also opted to extend bond purchases to December from March.