The yen jumped broadly, hitting a two-month high against the dollar and the two-week peak against the euro on Friday as weak euro zone gross domestic product data fanned concerns about the depth of the global recession. This drove investors to buy currencies perceived to be safer assets, with analysts saying the yen in particular is still seen by speculators as the funding currency of choice, helping it to a two-month high against the dollar. The dollar also rose against the euro, as well as other currencies seen as higher risk such as the Australian dollar, as investors sought safer assets after figures showed the German economy contracted a substantial 3.8 percent during the first quarter. Data released later showed the euro zone economy as a whole contracted by a bigger-than-expected 2.5 percent over the first three months of the year. [ID:nLF50071]. A string of weak GDP data out of various central and eastern European countries further stoked pessimism that the global economy is a long way from being out of the woods just yet. Meanwhile, analysts also noted a broader trend of Japanese investors turning towards their domestic bond markets, particularly as a fall in U.S. Treasury yields reduces their allure, which is lending support to the yen. "We are seeing a broad correction to the recent risk rally, and the yen is still seen by speculators as the favoured funding currency," BNP Paribas currency strategist Ian Stannard said. At 1042 GMT, the dollar fell 1.0 percent against the yen to 94.90 yen , having hit a two-month low of 94.78 on trading platform EBS after breaking below key support at 95 yen as well as the 100-day moving average of 95.14 yen. The euro tumbled 1.5 percent against the yen to 128.77 yen , having hit a two-week low around 128.41, while it also lost 0.5 percent against the dollar to $1.3560 .

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