TOKYO, Aug 14 (Reuters) The euro hit a one-month low against the dollar on Tuesday as the European

TOKYO, Aug 14 (Reuters) The euro hit a one-month low against the dollar on Tuesday as the European Central Bank's hefty cash injections to the money market cooled expectations for a September interest rate increase in the euro zone.

Against the low-yielding yen, the European single currency stayed near a four-month trough as investors dumped long euro positions that they had piled up on expectations that the ECB would raise interest rates to 4.25 percent next month from the current 4 percent.

''Investors are pretty much doubting about a September rate hike by the ECB,'' said Tsutomu Soma, a senior manager at foreign securities department for Okawan Securities.

''Investors are trying to square long euro positions as a rate hike would not be consistent with fund injections to the money market,'' Soma said.

But the euro's slide was limited as activity was subdued in the Tokyo market, with many Japanese investors and traders away for the ''obon'' summer holidays this week.

The ECB injected 47.67 billion euros ($65.3 billion) into euro-zone money markets on Monday in a one-day tender to replace Friday's special three-day tender for 61.05 billion euros.

The ECB and other central banks around the world have been providing funds into the global banking system in the past one week to stave off a money market squeeze caused by growing jitters about bank and fund losses from U.S. subprime mortgage problems.

The euro struck a fresh one-month low against the dollar at $1.3602 on electronic trading platform EBS in early Asian trade.

The single European currency slid against the yen to 160.75 yen from 160.95 yen in late U.S. trade on Monday. The euro hit a four-month low of 159.98 yen late last week.

The dollar dipped against the yen to 118.15 yen from around 118.25 yen in the late New York trade, staying off the four-month low of 117.19 yen hit last week.

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