TOKYO, Feb 27 (Reuters) - The dollar fell more than 1 percent against the yen on Friday, erasing all of the previous day's gains to a three-month high, as speculators took profits on its sharp rally against the Japanese currency over the past two weeks.
The dollar slid as low as 97.32 yen on trading platform EBS, down 1.2 percent on the day and well below a three-month peak of 98.72 yen struck the previous day.
Data showed Japan's industrial output fell by a record 10 percent last month, in line with market expectations, and dealers said the numbers fit with the view of many in the market that the yen had further to fall once the dollar profit-taking was out of the way. (Reporting by Rika Otsuka)