The dollar held on to its gains on Wednesday as investors awaited U.S. durable goods data and a speech from a Federal Reserve policymaker to give indications of the interest rate outlook. Durable goods figures, the main piece of U.S. data this week, are due at 1230 GMT and Chicago Fed President Michael Moskow is expected to speak on the economy at 2200 GMT. By 1150 GMT, the dollar had edged up about 0.2 percent versus the euro at $1.2206 and gained nearly 0.4 percent versus the yen at 110.36 . "Maybe the durable goods data will give us some clues where market sentiment is going," said Simon Derrick, head of FX research at Bank of New York. The yen struggled after rallying this month on optimism about Japan's economy, with the Nikkei share average hitting four-year highs, and on support for Prime Minister Junichiro Koizumi and his reform plans ahead of a September election. "The dollar's resilience is partly because the Nikkei appears to running out of steam. People had been buying the yen against the dollar in hope of a strong Nikkei resulting in more inflows, but that isn't the case," said Mansoor Mohi-Uddin, chief currency strategist at UBS. "Durable goods are expected to be down but the underlying trend is still up and we still expect a couple of rate hikes from the Fed." BNP Paribas said in a note the dollar's rebound suggests that interest rate differentials have once again become the driving force in global forex markets. Expectations the Fed would raise interest rates steadily beyond 4 percent this year have pushed the dollar up by 10 percent versus the euro. The Fed has already lifted overnight rates 10 straight times to 3.5 percent. The Swedish crown rose 0.16 percent versus the euro at 9.3295 as the Swedish central bank left interest rates steady at a record low of 1.5 percent as expected but said it saw higher growth and inflation.