NEW YORK, Aug 13 (Reuters) The euro fell versus the dollar and yen on Monday as the European Centra

NEW YORK, Aug 13 (Reuters) The euro fell versus the dollar and yen on Monday as the European Central Bank conducted a third liquidity-providing operation in euro zone money markets.

Meanwhile, slightly stronger U.S. July retail sales data and a higher opening in Wall Street lent some support to the dollar versus the Japanese yen.

The ECB injected 47.67 billion euros into the euro-zone money markets in a one-day tender on Monday to replace Friday's special three-day tender for 61.05 billion euros.

The operations are an attempt to help calm European financial markets rattled last week by spreading jitters about big bank and fund losses emanating from distress in the U.S.

subprime mortgage market.

Still, the added supply of euros combined with a growing view that the ECB may postpone an expected rate increase weighed on the European currency, analysts said.

''Demand for the euro is coming down because the currency and their markets are no longer insulated from possible subprime losses in the U.S.,'' said Omer Esiner, a market analyst at Ruesch International in Washington. ''On top of that, people now are not so sure about a rate hike in Europe and that is another drag.'' In midmorning trading in New York, the euro was down 0.3 percent at $1.3648. The euro was down 0.4 percent against the yen at 161.46 yen.

The dollar erased earlier losses versus the Japanese yen after a government report showed U.S. retail sales in July were slightly higher than expected.

The dollar last traded little changed at 118.28 yen, after earlier dropping as low as 117.66, according to Reuters data.

''The U.S. consumer had a decent attitude in July,'' said Brian Dolan, director of FX research at Forex.com in Bedminster, New Jersey. ''The dollar rose here after the data.'' High-yielding currencies such as the UK pound and New Zealand dollar also continued a weak run, as investors unwound carry trades where low-yielding currencies had been sold to fund purchases of higher yielding assets.

''Risk aversion remains high and that is hurting carry trades,'' said Esiner at Ruesch.

The pound was down 0.4 percent versus the dollar to $2.0143 and the New Zealand dollar was down 0.8 percent to $0.7399.

''Risk aversion is deeply entrenched as the unfolding events in the structured credit and subprime markets spill over into the real economy, which has hit high-yielders,'' Michael Klawitter, currency strategist at Dresdner Kleinwort said.

Until liquidity fears really started to grip markets last week, investors were convinced the ECB was on track to raise rates to 4.25 percent next month. These expectations now are at about 65 percent.

In the U.S., rate futures are pricing a 68-percent chance of an emergency intermeeting rate cut by the Federal Open Market Committee this month. Earlier on Monday, an intermeeting August rate cut was fully priced after ending Friday at about a 33-percent chance.

REUTERS PBB DB2045