The yen has come under fresh downward pressure on world currency markets amid lingering worries about the flagging Japanese economy.

With an overnight wave of selling in New York carrying over into Tokyo interbank trading on Friday, the yen slumped to a 17-month low of 116.90 to the dollar before settling at 116.29-32 at 5 p.m., compared with 114.15-18 late Thursday.

The greenback last traded in the 116 yen range in Tokyo in late July 1999. In New York trading Thursday, the dollar hit 115.78-88 yen at one time, a level also unseen in more than 17 months.