FOREX-Dollar slides vs euro, yen on uncertainty about Fed tapering
* Euro climbs to highest level vs dollar since mid-February
* Yen firm as stocks drop, emerging currencies sell off
* Near term focus on Fed minutes due Wednesday
* India's rupee hits record low vs U.S. dollar
NEW YORK, Aug 20 (Reuters) - The dollar fell on Tuesday, hitting a six-month low against the euro and a two-month trough against the Swiss franc, as U.S. Treasury yields retreated and the timing of the Federal Reserve's reduction in its stimulus efforts remained uncertain. Yields on the U.S. benchmark 10-year Treasury note dropped after hitting two-year highs the previous session in anticipation of an eventual tapering of the Fed's bond-buying program. Lower U.S. yields diminish the attractiveness of dollar-denominated assets. Conflicting views from Fed officials and mixed U.S. economic data have muddied the outlook for a tapering of the Fed's stimulus program, viewed as generally positive for the dollar. The release of the minutes of the Fed's July meeting on Wednesday could provide clues to whether the central bank will pare back those purchases in September. The U.S. currency fell on Tuesday against the yen and Swiss franc, with investors seeking out safe-haven currencies as global shares retreated and emerging market currencies saw another wave of selling. The dollar slid to a two-month low against the franc and a one-week trough against the yen. "Given the ongoing uncertainty surrounding the timing and extent of the U.S. Federal Reserve's exit from its quantitative easing program, we are seeing continuing evidence of safe-haven plays in the FX markets," said Samarjit Shankar, director of market strategy at BNY Mellon in Boston. "Most notably ... our iFlow FX indicators confirm the Japanese yen remains buoyed as market participants unwind riskier bets," he said. The dollar index, a measure of the U.S. dollar's value against a basket of six major currencies, fell 0.4 percent to 80.928. It earlier hit a two-month low of 80.754. In thin trade, the euro rose 0.6 percent to $1.3417 as the yield premium that 10-year U.S. Treasury notes offer over German Bunds narrowed. The euro had reached a session peak of $1.3452, according to Reuters data, its highest since Feb. 14. Mankash Jain, head of FX and investment management at Solo Capital, a London-based hedge fund, said volumes are nearly 50 percent lower than in April, so price moves can get exaggerated. "To us, any dip in the dollar offers a buying opportunity, especially against the yen, the Swiss franc, the euro and the pound," Jain said. Many investors believe the Fed remains likely to be the first among major central banks to unwind its liquidity program, which combined with an improving U.S. economy and rising risk aversion, should favor the dollar. The dollar fell 0.3 percent to 97.28 yen. Weakness in global stocks along with a selloff in emerging market currencies on fears of a Fed move next month have supported the Japanese currency. It earlier fell to 96.88, a one-week low. The dollar also slid 0.7 percent to 0.9178 Swiss franc , hitting a trough of 0.9145, its weakest level since mid-June. Subdued risk appetite hurt higher-yielding, growth-linked currencies. The Australian dollar fell 0.3 percent to US$0.9086 . The New Zealand dollar, meanwhile, slid 1.1 percent to US$0.7980 after the Reserve Bank of New Zealand announced home lending restrictions and said the currency was overvalued. Emerging market currencies also tumbled on jitters about the future of U.S. stimulus. Investors fear an end to cheap money and an improvement in the performance of advanced economies will reverse a flow of much-needed capital away from emerging markets. India's rupee fell to a record low, forcing the central bank to intervene in the market while the Indonesian rupiah hit fresh four-year lows.