TOKYO, Feb 14 The dollar steadied against other major currencies on Wednesday as investor

TOKYO, Feb 14 (Reuters) The dollar steadied against other major currencies on Wednesday as investors looked to Federal Reserve Chairman Ben Bernanke's two-day congressional testimony for clues on the future path of U.S. interest rates.

The dollar had weakened broadly on Tuesday after data showing a wider-than-expected U.S. trade deficit in December, which led economists to predict downward revisions to fourth-quarter economic growth data.

Bernanke will deliver the Fed's twice-yearly monetary policy report on Wednesday and Thursday, with traders watching to see if he reiterates concerns about inflation that other Fed officials expressed last week.

''Market participants are expecting Bernanke to reaffirm the central bank's vigilance on inflation,'' said Tsutomu Soma, a senior trader at Okasan Securities.

Analysts said the dollar is likely to get support if Bernanke highlights upside risks to economic growth and inflation, helping ease expectations that the Fed will start cut interest rates this year.

The Fed has left the fed funds rate at 5.25 percent since August.

The dollar rose 0.1 percent from late New York trade to 121.25 yen after falling 0.6 percent in the previous session. On Monday it climbed near a four-year peak of 122.20 yen struck in January.

The euro edged down to $1.3030 from around $1.3040, but the single European currency rose 0.1 percent against the yen to 158.05 yen The euro rose on Tuesday after data showed that the euro zone economy grew by a better-than-expected 0.9 percent in the fourth quarter, bolstering expectations that the European Central Bank will raise interest rates in March.

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