UPDATES ON JULY 10 2008

JULY 10 THURSDAY

Dollar Is Little Changed Before Bernanke, Paulson Testimony .

The dollar was little changed against the euro before

Federal Reserve Chairman Ben S. Bernanke and U.S.

Treasury Secretary Henry Paulson address U.S. law

makers on their response to widening credit-market

losses.

The U.S. dollar fell against Australia's currency as traders

increased bets the Fed will keep interest rates on hold

through 2008, boosting the appeal of higher-yielding

assets. The British pound declined on speculation the

Bank of England will keep interest rates unchanged today

to curb inflation, increasing the risk that the economy will

enter a recession.

The dollar traded at $1.5725 per euro at 12:38 p.m. in Tokyo

from $1.5743 yesterday in New York. The U.S. currency bought

106.87 yen from 106.76. The yen was at 168.04 per euro from

168.06.

The pound fell to $1.9815 from $1.9832. Against the euro

, it was little changed at 79.36 pence.

The dollar has fallen 11 percent against the euro since

September, when the Fed made the first of seven reductions

in its target lending rate to avert a recession. Futures

contracts on the Chicago Board of Trade show the odds that

policy makers will keep borrowing costs unchanged this year

rose to 32 percent from 7 percent a month ago.

Traders yesterday increased bets the ECB will raise

borrowing costs again to curtail 4 percent annual inflation

that is twice the central bank's 2 percent target. The implied

rate on the December Euribor interest-rate futures contract

rose 0.02 percentage point to 5.12 percent.