The dollar hit a two-week high against the yen on Friday as investors believe that the end of the Bank of Japan's hyper-loose policy will not stop capital flowing out of Japan in search of higher returns abroad. The dollar also drew support from hopes that a solid reading in U.S. jobs data at 1330 GMT could fuel expectations the Federal Reserve will raise interest rates beyond 5.0 percent from 4.5 percent now. Economists polled by Reuters expect a rise of 210,000 non-farm payroll jobs, although "whisper" numbers in the market are for a higher figure. "We expect an increase of about 300,000 jobs," said Masafumi Yamamoto, currency strategist at Nikko Citigroup in Tokyo. "Strong figures in the data are likely to spur dollar buying." With the BOJ expected to keep interest rates near zero for the next few months and possibly even longer, the dollar's hefty yield advantage will prove irresistible for Japanese investors, traders said. The market expects the Fed to lift its funds rate for the 15th straight time in March to 4.75 percent and is likely to increase it again to 5 percent in May. The European Central Bank is also seen raising rates a few more times by the end of the year. As of 0555 GMT, the dollar was changing hands at 118.45 yen , up 0.2 percent from late U.S. levels and just below a two-week high of 118.71 yen struck earlier in the session. Japan's low yields have undermined the yen. The BOJ's trade-weighted index for the yen hit a four-year low in February and is down about 10 percent in the year to February. Buying by Japanese investors and importers helped the dollar, traders said, though exporters were hefty sellers over the course of the session. The euro was little changed at around $1.1905 but edged up to 141.00 yen from 140.80 yen. Data on Thursday showing the U.S. trade deficit widened to a record $68.5 billion in January, beyond the $66.5 billion forecast by analysts, did little to dent the dollar. "The fact that the dollar rose even after the record U.S. trade deficit seems to suggest there are so many investors out there who want to buy the dollar," said Mitsuru Sahara, forex manager at Bank of Tokyo-Mitsubishi UFJ.