The dollar edged up against the yen on Wednesday after recovering all of the losses made on China's revaluation of the yuan, as investors' attention swung back to rising U.S. interest rates. A string of U.S. data is due this week, including new home sales and durable goods orders later on Wednesday, that should provide clues about how much further the Federal Reserve could raise rates after nine straight rises since June 2004. Strong U.S. economic data could reinforce expectations the Fed will raise rates to 4 percent by year-end and perhaps even further in 2006, analysts said. "The market is rather confident the dollar-buying trend will continue," said the chief trader at a European brokerage. After the People's Bank of China on Tuesday played down talk of a further revaluation in the yuan, the dollar returned to an uptrend that has seen it rise more than 11 percent against a basket of currencies <=USD> this year. This encouraged the paring back of bets by investors who had sold dollars for yen on expectations that further yuan strength would spill over into other Asian currencies. "The statement from the Chinese central bank confirmed that July 21 was the last we'll hear about revaluation for a while," said Daisuke Uno, market analyst at Sumitomo Mitsui Banking Corp. As of 0613 GMT, the euro was down slightly at $1.1995 after slipping around 0.3 percent on Tuesday. The single European currency was little changed at 135.15 yen . The dollar hovered around 112.70 yen , up from near 112.55 yen in late U.S. trade. It rose nearly 1 percent on Tuesday to reclaim levels it was at before the revaluation was announced. Some traders said the yen also came under pressure from a Kyodo News report an investigation could be reopened into a political donation scandal involving a key supporter of Prime Minister Junichiro Koizumi's postal reform bills. Koizumi has threatened to dissolve the lower house and call an election if the bills, aimed at privatising Japan Post and a centrepiece of his reforms, are not passed in the upper house.