The dollar fell to its lowest level in more than eight months against the yen in Asia on Wednesday as more weak US data fuelled doubts about the strength of recovery in the world's top economy, dealers said. The dollar was changing hands at 85.62 yen in Tokyo afternoon trade after falling to 85.39 yen, its lowest since late November. The dollar bought 85.80 yen in New York late Tuesday. The euro was trading at 1.3216 dollars and 112.89 yen, down from 1.3225 dollars and 113.52 yen in New York. Dealers said that if the US economy continued to slow, the US Federal Reserve might have to step in with fresh stimulus measures which would likely weaken the dollar further. The greenback took a hit from reports of a slight dip in US consumer spending as well as a fall in factory orders and pending home sales, which added to fears about the state of the US recovery. 'Pressure to sell the dollar has intensified amid speculation that the FOMC (Federal Reserve Open-Market Committee) could move for additional monetary easing,' Credit Suisse said in a note. 'It seems that the Bank of Japan would also need to take some sort of measures to curb the yen's strength,' it said. But it added it would also be difficult for the bank to take concrete monetary- easing measures given it raised its estimate of Japan's economic growth only recently. Finance Minister Yoshihiko Noda on Tuesday suggested that the government might be reluctant to intervene in currency exchange markets. 'Our fundamental stance is that foreign exchange rates are something that should basically be set by the market,' Noda said during a session of the lower house's fiscal and financial committee. The strong yen hurts Japanese exports, which have been driving the country's slow recovery from deep recession. However, analysts said they could not rule out the possibility of some form of Japanese intervention, adding that a dollar fall below 85.00 could trigger action. 'We do expect that Japan will draw a line in the sand... at 85.00, since a sustained fall below here would significantly crimp Japanese exporters,' noted John Kyriakopoulos of National Australia Bank. The dollar may fall to 85.00 amid speculation that US interest rates will remain low longer than previously expected, a senior forex dealer at major Japanese bank told Dow Jones Newswires. However the dollar rose to 1.3537 Singapore dollars from 1.3516, to 31.79 Taiwan dollars from 31.70, to 1,170.09 South Korean won from 1,168.50 and to 8,947.50 Indonesian rupiah from 8,943.00 due to profit-taking. The greenback was stable at 45.19 Philippine pesos and at 32.17 Thai baht. 