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 Wed...