Dollar drops to 128 yen on speculation U.S. rate hike cycle ending

The U.S. dollar plunged to the lower 128 yen range in Tokyo Thursday, briefly falling about 2 yen from its level the previous day, after remarks by Federal Reserve Chair Jerome Powell fueled speculation the interest rate hike cycle in the United States is nearing its end.

Tokyo stocks were mixed Thursday morning, as upward momentum from optimism over the prospects of easing rate rises in the United States was offset by the yen’s strength.

The 225-issue Nikkei Stock Average rose 44.97 points, or 0.16 percent, from Wednesday to 27,391.85. The broader Topix index was down 6.38 points, or 0.32 per...