Dollar weak in mid-128 yen zone on prospect of slower U.S. rate hikes

The U.S. dollar remained weak early Thursday in Tokyo after falling to the mid-127 yen level in New York overnight, as weaker-than-anticipated U.S. data stirred expectations of slower interest rate hikes and erased earlier gains made after the Bank of Japan decided to maintain its ultraloose monetary policy.

At 9 a.m., the dollar fetched 128.52-55 yen compared with 128.89-99 yen in New York and 130.24-27 yen in Tokyo at 5 p.m. Wednesday.

The euro was quoted at $1.0796-0800 and 138.76-83 yen against $1.0790-0800 and 139.08-18 yen in New York, and $1.0827-0828 and 141.03-07 yen in Tokyo late Wednesday afternoon.

Tokyo stocks opened lower, as investors locked in gains after surges the previous day on the BOJ decision.

In the first 15 minutes of trading, the 225-issue Nikkei Stock Average fell 252.67 points, or 0.94 percent, from Wednesday to 26,538.45. The broader Topix index was down 10.57 points, or 0.55 percent, at 1,924.36.

© Kyodo News