LONDON (AFX) - The dollar remained higher in quiet midday trade as the Bank of Japan continued intervening to weaken the yen and the futures market indicated the S&P 500 in New York will open strongly, dealers said. The possibility of imminent US attacks, and success, in Afghanistan also provided some support and helped the Swiss franc claw back some early losses. Steve Barrow, currency strategist at Bear Stearns said the dollar is gaining ground as hopes grow of swift success against the terrorists. "If you look back at the Iraqi conflict, the dollar started making a strong comeback, way before the battle was over," he said. Even though the dollar is on a down trend, Barrow said the currency is likely to continue to appreciate over the short-term in light of the global situation. The dollar, is also benefiting, from further intervention by the Bank of Japan, which is thought to have splashed over 10 bln usd holding back the yen. It confirmed that it intervened today even though it is a public holiday in Japan. "I'd say there's a slight sense that the Bank of Japan may be wearing down the dollar bears in the market," said Barrow. Jeremy Hawkins, chief economic adviser at Bank of America in London, said the markets remain to be convinced about the long-term success of the BoJ's intervention, given that part of this yen purchasing is "enforced liquidation of carry trades". The dollar is also being supported, Hawkins noted, by the respectable opening anticipated on Wall Street. The S&P Futures market is anticipating a near 2 pct improvement during today's session. "It may not be something to write home about," said Hawkins, "but it is providing the dollar support, following last week's stock plunge." The swiss franc has lost some of the gains it made last week, but a military escalation in Afghanistan, would again revive its safe haven status, whatever the interest rate environment. The euro is likely to be the biggest casualty of any progress made by the dollar, given the lack of euro supportive fundamentals. The renewed build-up in euro long positions by speculative accounts at the CME also favours a softer single currency, dealers said. Though the latest balance of payments figures from the euro zone were viewed moderately positively, they have failed to provide the euro support, given they have been largely overtaken by events, said Bank of America's Hawkins. Tuesday's consumer confidence figures from the US is the next key set of data markets will be eagerly looking at, said Bear Stearn's Barrow.