TOKYO (AFX-ASIA) The dollar was firmer against the major currencies in midmorning trade thanks to short-covering ahead of July 4 holiday in the US, dealers said. Commerzbank foreign exchange manager Ryohei Muramatsu said that despite the modest recent rebound in the dollar, the unit is expected to remain exposed to downside risk because of uncertainty over the trends on Wall Street arising from successive accounting scandals. "It is too early to say that all the accounting scandals are over," Muramatsu said. At the same time, concerns that there could be similar accounting problems in Europe may act to support the dollar to some degree. "Even so, the underlying bullish trend of the euro against the dollar is expected to continue, judging from the relatively solid support seen below the 0.98 usd level," Muramatsu said. "The euro, however, is not likely to test parity immediately, now that fears over a possible spillover of accounting scandals to European firms have emerged ." The dollar is also firmer against the yen thanks to short-covering and the weakness of the local equity market, combined with concerns over possible intervention by the Japanese authorities, dealers said.