London, March 30 (Bloomberg) -- The yen plunged to the lowest level in two anda half years against the dollar after Economic and Fiscal Policy Minister TaroAso suggested the U.S. would condone a weaker yen. The Japanese currency fell more than 1 percent to 124.90 per dollar, traderssaid. That's the weakest since Oct. 7, 1998, when it touched 131.20. Againstthe euro, it fell to a three-day low of 109.71, from 108.74 yesterday. The euro was little changed near a three-month low against the dollar at 87.98U.S. cents, from 88.08. That's the first time it's been below 88 cents since Dec.14. Policy to approve a weaker yen was discussed within the U.S. government, Asotold reporters after a cabinet meeting. He also said the topic wasn't brought upwhen President George W. Bush met Japanese Prime Minister Yoshiro Mori onMarch 19. A weaker yen would help lure overseas buyers to Japanese exports,spurring growth in the world's No. 2 economy. ``Aso must know what the result of his comments would be,'' said HansRedeker, chief currency strategist at BNP Paribas. ``This is another officialattempt to weaken the yen, and the market is jumping on it.'' Redeker sees theyen falling to between 130 and 135 per dollar in coming weeks.