Yen tumbles after surprisingly weak Japan GDP

The yen fell almost one percent against the dollar and hit a three-month low versus the euro on Friday, after surprisingly weak Japanese growth data cast doubt over the health of the economy.
Japan's economy grew 0.4 percent in April-June from the previous quarter, government data showed. That was well below a median forecast of 1.0 percent growth in a Reuters poll.
"The numbers are worse than expected, and coming especially at a time when oil prices are at record highs this news is being taken as a clear negative for the yen," said Junya Tanase, currency strategist at J.P. Morgan Chase in Tokyo.
The dollar was at 111.65/68 yen, up sharply from around 110.80 in late New York trade.
It rose as high as 111.82, and traders said there was a chance it would hit 112 yen during London trading.
The euro fetched 136.51/55 yen after hitting 136.85, its highest level since May 18. It was 135.55 in late US trade.
Against sterling, the Japanese unit was at 203.22/33 yen versus 202.02/14.
The single European currency was little changed at around $1.2233/36.
Dealers said price movements were exaggerated due to thin trade, with many Japanese investors off on summer holidays.
Analysts say Japan's export-led recovery could also be hurt by any slowdown in global economic growth if oil prices continue to rise. Japan imports all of its oil.
On Thursday, oil prices set record highs of $45.75 a barrel, as US-led forces sought to crush a rebellion in the holy Iraqi city of Najaf, a move that could trigger fresh attacks on oil infrastructure.
Although the GDP figures came as a surprise for many players, they said it was unlikely to leave a long-lasting effect on the market.
"These are past figures and are not indicators for the future," said Takashi Toyahara, a manager at Nomura Securities.
"Rather, the focus remains on the US economy and whether the Fed (Federal Reserve) will raise rates again in September."
Later in the day, the market will take a look at a series of US economic reports, including producer prices, trade balance figures, and the University of Michigan consumer sentiment survey.