The euro fell to an eight-week low against the dollar and had its biggest decline in almost two months versus the yen on speculation the European Central Bank will signal concern today that economic growth is slowing.

The currency declined for a second day after the yield spread between two-year German notes and Treasuries narrowed as investors bet the sputtering economy will force the ECB to cut interest rates this year. Policy makers will leave the key rate on hold today, according to a Bloomberg survey. ECB President Jean-Claude Trichet will give a press conference later. The yen rose as slumping Asian stocks prompted investors to sell higher- yielding holdings funded in the Japanese currency.

``The euro is falling today because investors are positioning for a possible shift in rhetoric during the conference,'' said Michael Klawitter, currency strategist at Dresdner Kleinwort in Frankfurt. ``I think it's too early to make any changes in the statement, but there's a chance they might emphasize more on downside risks to growth this time.''

The euro traded at $1.5342 at 10:25 a.m. in London, from $1.5392 yesterday in New York and fell to $1.5285 earlier, the lowest since March 11. It also slipped to 159.51 yen, from 161.23 yesterday, after trading at 159.05 yen, the weakest since April 14. The yen rose to 103.98 versus the dollar, from 104.73.

The yield gap between two-year German notes and Treasuries narrowed to 150 basis points today, from 152 basis points yesterday and the record high of 185 basis points March 31.

All 53 economists in a Bloomberg survey predict the ECB will leave rates on hold at a six-year high of 4 percent. A separate survey shows analysts expect the central bank to start cutting is benchmark rate in the third quarter.