MARKETS-FOREX (UPDATE 7) * Greek fiscal woes hurt euro after S&P comments * Yen broadly higher, hits 1-year high vs euro * U.S. jobless claims rise unexpectedly in latest week (Recasts, adds details, updates prices, changes byline, dateline, previous LONDON) By Wanfeng Zhou NEW YORK, Feb 25 (Reuters) - The dollar and euro fell against the yen on Thursday as worries about the Greek debt crisis and an unexpected rise in U.S. initial jobless claims boosted safe-haven flows into the Japanese currency. The euro neared a nine-month low against the dollar and hit a one-year low versus the yen as worries about Greece intensified after ratings agency Standard and Poor's said late on Wednesday it may cut Greece's rating by one or two notches within a month. [ID:nLDE61N2KL] The number of U.S. workers who filed initial claims for unemployment benefits rose unexpectedly in the latest week to 496,000, a U.S. Labor Department report showed on Thursday. Markets had expected claims to decrease to 455,000, according to a Reuters poll. For more, see [ID:nN24129689] "The jobless claims data is really ugly. This seems to be the critical sticking point to the whole recovery thesis," said Boris Schlossberg, director of currency research at GFT in London. "Unless we can get that initial claims number closer to 400,000, there will be no jobs creation. The dollar as a result could be vulnerable going forward," he added. In early trading, the dollar dropped to a session low of 88.95 yen , its lowest in about three weeks, according to Reuters data. It last traded at 89.09 yen, down 1.2 percent on the day. The euro fell as low as $1.3452, near a nine-month low of $1.3442 hit on Friday, according to Reuters data. It last traded at $1.3467, down 0.5 percent. Among other ratings agencies, Moody's Investors Service told Reuters on Thursday any changes in its ratings on Greece would depend on whether Athens delivered on its fiscal reform plans [ID:nTOE61O07J]. Fitch Ratings expects to keep Greece's BBB+ rating unchanged for the next few months barring surprises and is maintaining its negative outlook. See [ID:nLDE61O1EB] The spread between Greek and German 10-year government bonds widened, and the cost of insuring Greek debt against default also rose [ID:nLDE61O127]. The euro traded as low as 119.77 yen, the lowest since February, 2009, according to Reuters data. It was last at 119.80 yen, down 1.8 percent on the day. (Additional reporting by Gertrude Chavez-Dreyfuss; Editing by Chizu Nomiyama)

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