By Frances McInnis Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--The dollar ticked down against the yen Wednesday morning, but remained up on the day, after U.S. durable goods data added to continuing worries about the U.S. economy. Speculation that Japanese authorities will take action to counter yen strength helped to support the greenback against the yen. Japanese officials have ramped up their rhetoric against appreciation in the yen in response to the currency's 15-year high against the dollar and nine-year high against the euro hit Tuesday. The dollar "is drawing some temporary support from an increased risk of near-term policy action by Japanese officials," said Omer Esiner, head of currency market analysis at Commonwealth Foreign Exchange in Washington. "However, given the overwhelmingly negative mood in markets--reinforced by the negative durable goods orders [Wednesday] morning," the yen may soon resume its upward march, Esiner said. The euro gave up its overnight gains against the dollar Wednesday as concerns about the financial health of countries on the periphery of the euro zone overshadowed better-than-expected data out of Germany. Early Wednesday, the euro was at $1.2645, down from $1.2674 late Tuesday, according to EBS via CQG. The dollar was at Y84.24, from Y84.15. The euro was at Y106.53 from Y106.64. The U.K. pound was at $1.5448 from $1.5433. The U.S. dollar was at CHF1.0265 from CHF1.0312. The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 83.271 from 83.139. Demand for U.S. manufactured durable goods rose by 0.3% to a seasonally adjusted $193.02 billion, the Commerce Department said Wednesday. Economists surveyed by Dow Jones Newswires expected a 2.8% gain. The lackluster increase serves as further indication that expansion in the manufacturing sector is wavering and, along with Tuesday's dismal existing home sales data, highlights the slow pace of the U.S. recovery. The data raise anticipation for Friday's comments from Federal Reserve Chairman Ben Bernanke at the Jackson Hole, Wyo., economic policy symposium held by the Federal Reserve Bank of Kansas City. Investors are waiting to see whether the Federal Reserve will take action--such as further quantitive easing---to prop up the country's faltering recovery. "Bernanke's speech on Friday in Jackson Hole is now especially important," said Douglas Borthwick, managing director of Faros Trading in Stamford, Conn. Adding to the downbeat tone in markets, fears about countries on the periphery of the euro zone were stoked when Standard & Poor's Ratings Services trimmed its rating on Ireland to AA- late Tuesday. The agency said the projected fiscal cost to the Irish government of supporting the hard-hit financial sector has increased significantly above prior estimates. The Swiss franc hit an all-time high against the euro for the second straight day after the ratings downgrade bolstered its status as a haven. The euro fell to a record CHF1.2973, but was changing hands at CHF1.2977 in New York. "It's the periphery areas which are the cause of most of the concern," said analysts at Brown Brothers Harriman. "Markets are coming to the conclusion that a strong Germany and a weak periphery really is not good for the single currency." On the data front, business confidence in Germany rose again in August, defying recent indications of a global slowdown that could dent demand for its exports, the research institute Ifo said Wednesday. Although the euro initially gained on the news, rising as high as $1.2727, the common currency subsequently fell back. Japan, another traditional safe haven, didn't benefit from the sour mood in markets due to increased "jawboning" by Japanese officials against yen strength. Japan moved closer to action to curb the surging yen, threatening to intervene in the currency market for the first time in more than six years, while the central bank may be set to ease monetary policy. Japan "must take appropriate action when needed" to combat unwelcome moves in the yen, which have recently been "one-sided," Finance Minister Yoshihiko Noda told reporters before meeting with Prime Minister Naoto Kan to discuss the currency. Canada morning The Canadian dollar softened to a seven-week low against its U.S. counterpart early Wednesday, after softer-than-expected July U.S. durable goods orders. The U.S. dollar was at C$1.0640 from C$1.0594 late Tuesday. "I think the market is certainly getting used to negative surprises on the data front," said Matt Perrier, director of foreign exchange sales at BMO Capital Markets in Toronto. "That being said, the market does react accordingly." Investors are bracing now for U.S. new-home sales data, due at 10:00 a.m. EDT. "After [Tuesday's] very disappointing existing-home sales, expectations are low for new home sales, so anything short of a catastrophe could bring a bid to risk assets," said Jack Spitz, managing director of foreign exchange, financial markets and derivatives at National Bank in Toronto. -By Frances McInnis, Dow Jones Newswires; 212-416-3417; frances.mcinnis@dowjones.com (Takashi Nakamichi, Megumi Fujikawa and Tomoyuki Tachikawa in Tokyo contributed to this article.)

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