(Changes byline, updates prices)

* Euro falls to five-month low vs dollar around $1.51

* Pound hits 17-month low, dollar flirts with 110 yen

* Some analysts say long-term dollar recovery under way

By Jamie McGeever

LONDON, Aug 8 (Reuters) - The dollar surged on Friday, firmly on track for its biggest weekly rise in 3-1/2 years as fears intensified that the U.S. economic slowdown is spreading around the world.

Most major currencies, including the euro, sterling and Swiss franc, fell 1 percent or more against the greenback, which some analysts suggest may finally be emerging from its broad downtrend that has lasted almost seven years.

On Thursday, European Central Bank President Jean-Claude Trichet highlighted the increasing risks to euro zone growth, Japan's government said the country's economy may be in recession, and one closely-watched measure of British house prices showed the biggest monthly fall in July on record.