The dollar fell against the yen after weak U.S. producer price and manufacturing data, and the euro traded near a two-month high against the greenback as markets worried about the strength of U.S. economic recovery.

The dollar fell to 88.00 yen JPY= from around 88.25 yen before the data, while the euro was trading up 0.8 percent at $1.2840 EUR=.

(Reporting by Steven C. Johnson; Editing by Theodore d'Afflisio)