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TOKYO, Oct 30 (Reuters) The dollar stayed in sight of a one-month low against the yen on Monday after soft U.S. growth data reinforced expectations that the Federal Reserve would keep interest rates steady for a while.

U.S. economic growth in the third quarter slowed to 1.6 percent, its weakest pace in over three years due to a slumping housing sector, the U.S. Commerce Department said on Friday.

The data strengthened expectations that the Fed would not raise rates again and stirred some speculation that they might even cut rates in early 2007 to boost growth.

''The dollar might have entered a bit of an adjustment phase and it might be prudent to expect a bit more of a decline,'' said a trader for a Japanese trust bank.

The dollar, however, could find some support during Asian trading from possible buying demand by Japanese investors and importers, dealers said.

In early Tokyo trade, the dollar stood at 117.55 yen, little changed from the level in late U.S. trading on Friday, when it fell to a 1-month low of 117.13 yen on electronic trading platform EBS.

The euro inched down to $1.2730, still near Friday's peak of $1.2751 -- the highest in more than three weeks.

The euro slipped to 149.60 yen from around 149.80 yen, off its record high of 150.80 yen hit on Friday.

The yen showed little immediate reaction to data showing Japanese industrial production fell 0.7 percent in September from a month earlier, compared with a median market forecast for a decline of 1.0 percent.

Reuters DH VP0558