US dollar extends losses vs yen after Chicago PMI

NEW YORK Aug 31 (Reuters) - The U.S. dollar extended declines slightly against the yen but held gains versus the euro on Monday after data on business activity in the U.S. Midwest came in stronger than expected.

The dollar fell 0.5 percent to 92.98 yen JPY= compared with 93.05 yen before the data.

The euro was last down 0.1 percent at $1.4286 EUR=, little changed from $1.4285 before the release.

The Institute for Supply Management-Chicago business barometer rose to 50.0 from 43.4 in July. Economists had forecast the index at 48.0. See [ID:nN28382729].

"Fifty is the midpoint for growth or contraction, so that's important. But the August number was likely affected by the Cash for Clunkers program," said Jacob Oubina, currency strategist at Forex.com in Bedminster, New Jersey. (Additional reporting by Steven C. Johnson; Editing by James Dalgleish)