The dollar hit a multi-month lows against the yen and Swiss franc on Friday as U.S. economic growth data showed growth in the world's largest economy is slowing and reinforced the view interest rates will remain low well into the next year.

Dollar bears sold the U.S. currency versus the yen after the government said in its first estimate that second quarter U.S. gross domestic product expanded at a 2.4 percent annual rate, after a revised 3.7 percent pace in the January-March quarter.

Analysts said Friday's report follows a string of recent weak data from the United States, that has weighed broadly on the dollar. They added the data may also hurt demand for perceived riskier assets, favoring investments in currencies such as the yen and the Swiss franc.

It's going to be very difficult for a (dollar) rally and people are going to get more risk averse. You could see euro go below $1.30 and the dollar fall below 86 yen, said Boris Schlossberg, director of FX research at GFT Forex in New York.

The GDP report is not helpful to the risk trade or the dollar-yen, since we're seeing across all U.S. data releases signs that the U.S. economy really is stuck in the mud, he added.

In morning trade in New York, the dollar was down 0.5 percent at 86.31 yen JPY=, after hitting a fresh eight-month low of 85.95 yen according to Reuters after the GDP report.

Stop-loss sales were triggered earlier at a previous low of 86.25 yen, traders said.

The yen also took in its stride comments by Japanese Finance Minister Yoshihiko Noda who said he was closely watching the market. Deputy Finance Minister Motohisa Ikeda said he was worried about the impact of a rising yen on Japan's exports.

But traders and analyst said said they do not seriously expect Japanese authorities to intervene to stem the yen's rise until it goes beyond 84.81 yen to the dollar hit in November 2009, according to Reuters data. That was a 14 1/2 year high for the yen.

The dollar also fell to a six-month low against the Swiss franc earlier of 1.0364 francs CHF=. That also prompted the Swiss currency to rise against the euro EURCHF=.

The euro fell 1.2 percent versus the yen EURJPY=R to 112.10 yen and 0.6 percent versus the dollar to $1.3003 EUR=.

Traders said the euro's fall against the yen was related to redemption flows from Spanish bonds.

The euro's recovery to an 11-week high versus the dollar earlier in the week had been partly driven by rising euro zone money market rates, which fell on Friday.

(Additional reporting by Steven C. Johnson in New York and Neal Armstrong in London) (Editing by Theodore d'Afflisio)