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TOKYO, July 31 (Reuters) The dollar stayed pressured on Monday after surprisingly slow U.S. growth data for the second quarter further dampened expectations that the Federal Reserve would boost interest rates at its meeting next week.

The dollar fell to a 2-1/2-week low against the yen on Friday following data showing gross domestic product grew at a 2.5 percent annual pace in April-June, below the forecast for 3.0 percent, and slowing from 5.6 percent in the first quarter.

Traders said that the dollar lacked momentum and was expected to hover around current levels before the Fed's Aug. 8 meeting.

The market would also keep a close eye on such key data as the U.S. nonfarm payrolls figures for July due on Friday for clues about the course of monetary policy.

''It is difficult to buy the dollar, with the probability of the Fed raising interest rates falling,'' said a dealer at a foreign bank.

At the same time, with a growing number of market players leaving for summer holidays, there was no need to hurry and unload dollar positions, keeping the currency in ranges ahead of the meeting, he said.

In early trading, the dollar recovered slightly on buying by Japanese importers.

The dollar was up slightly at 114.80 yen.

Receding chances that the Fed would raise rates for the 18th consecutive time has boosted the allure of the euro, with the European Central Bank poised to boost rates at its meeting on Thursday.

The euro was little changed at around $1.2765.

The single currency rose to 146.50 yen from around 146.30 yen in late U.S. trade on Friday.

Traders said that with sentiment weakening for the dollar, some players may use Japan's industrial production data due at 2350 GMT and stock prices -- if both are solid -- as an excuse to buy the yen.

REUTERS SB HS0956