LONDON - The dollar fell to an eight-month low against the yen on Friday while European and Asian shares slipped on worries US growth data due later in the day may show the world's biggest economy is losing steam. The retreat in stocks fed a rally in lower risk euro zone and US government bond prices, with comments from a Federal Reserve official adding to fears about the economy. The second quarter GDP data, due at 8:30 a.m. ET, will be particularly closely watched after a stream of economic data in the past month flagged a slowdown in the US economy's recovery from the worst downturn since the 1930s. The dollar fell to 86.17 yen on trading platform EBS, its lowest level since November 2009. Stop-loss trades below the previous low of 86.25 yen were triggered before support emerged from bids in the 86.20 yen area. "US economic data is underperforming and keeping pressure on the dollar," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ. "Concerns about the US economy and Fed easing will also put US yields, which are a key driver for dollar/yen, on the downside," he said. Benchmark US 10-year Treasury note yields, which move inversely to prices, were 1.4 basis points lower at 2.972 per cent by 3:55 a.m. ET. The yields hit a 15-month low of 2.855 per cent earlier this month on persistent fears the economy was tipping back into recession.
