London, April 18 (Bloomberg) -- The dollar fell against the yen to its lowest level inthree weeks, before a report due out today that may add to evidence a U.S.economic slowdown will continue for the next few months. The dollar fell to as low as 122.69 yen per dollar, its lowest since March 29,before trading at 123.10, from 123.46 in London late yesterday. That brings itsdrop against the Japanese currency to 2.8 percent this month. Against the eurothe U.S. currency was at 88.13 U.S. cents per euro from 88.05. ``I can envisage a situation where the U.S. economy deteriorates further,'' saidTim O'Dell, who helps oversee about $25 billion at Investec Asset Management.``The damage to confidence is pretty much entrenched, I can't see a quickrecovery in the U.S.'' The Conference Board is scheduled to report that its index of leading economicindicators declined in March for a second consecutive month. Current growthprospects in the U.S. may lure investors away from dollar assets. Analysts surveyed by Bloomberg News anticipate a 0.3 percent decline in theindex, after a 0.2 percent drop in February. The index, which is intended toproject economic growth over the next half year, is released at 3 p.m. Londontime. The dollar's weakness against the yen also came as Japanese stocks climbed,boosting demand for the currency to buy them. ``The surge in stocks indicates demand for Japanese assets is improving, helpingthe yen,'' said Kenji Takei, a currency sales vice president at the Tokyo branch ofSociete Generale SA. Japan's Nikkei 225 stock average surged as much as 4.5 percent to its highestlevel since April 6, following gains in U.S. stocks.