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Tuesday March 27, 2:36 PM FOREX-Dollar pressured as U.S. new-home sales disappoint TOKYO, March 27 (Reuters) - The dollar stayed near overnight lows against most other major currencies on Tuesday after U.S. sales of new homes in February fell to the lowest rate since June 2000, resurrecting expectations of a Federal Reserve interest rate cut. The report offset stronger-than-expected existing home sales data last Friday and reignited concerns that the slowing U.S. housing market has yet to stabilise. "Monday's data was a big disappointment to the market, which was about to turn optimistic over U.S. subprime loan problems," said Kengo Suzuki, a currency strategist at Shinko Securities. "Market participants are likely to hesitate to trade actively before Fed Chairman Ben Bernanke's congressional testimony on Wednesday." Bernanke's testimony will take place a week after the Fed kept rates unchanged at 5.25 percent and dropped a reference to the possible need for "additional firming" of monetary policy from its post-meeting statement. The euro was little changed from late New York at $1.3325 as of 0551 GMT after rising to $1.3347 on Monday, edging back towards a two-year high of $1.3412 hit last week. Against the yen, the single currency rose to a one-month high above 157.75 yen before easing back to 157.33 yen. Monday's comments by policymakers of the European Central Bank helped firm market expectations for more euro zone interest rate hikes this year and gave a boost to the single currency. The euro's near-term fortunes will hinge on the results of Germany's IFO survey of business sentiment due later this session. The business climate index is expected to dip to 106.5 in March from 107.0 in February according to a Reuters survey. The dollar rose as high as 118.36 yen, rebounding from an overnight low of 117.64, before pulling back to 118.07. Analysts said expectations for Japanese inflation data due out on Friday eroded yen support. Japan's February core nationwide consumer price index is expected to have declined 0.1 percent, according to a Reuters Poll. The Australian and New Zealand dollars gained as traders rebuilt carry trades, in which low-yielding currencies such as the yen are used to buy higher-yielding currencies and assets. The Australian dollar hovered around $0.8090 after rising above $0.8100 for the first time in 10 years in the previous session. The Aussie hit a one-month high around 95.77 yen, buoyed by market expectations for Australia's central bank to raise rates as early as next month from the current 6.25 percent, before pulling back to 95.43 yen. The New Zealand dollar stayed close to its 15-month high just above $0.7180 struck after the U.S. data, while rising to a one-month high against the yen of 84.81 yen earlier in the session. BERNANKE TESTIMONY IN FOCUS Chicago Federal Reserve President Michael Moskow said in a speech prepared for delivery in Beijing on Tuesday that high inflation is a bigger concern for the United States than slower economic growth. Moskow said weakness in housing posed the greatest risk to his economic outlook. Investors are now keen to hear what Bernanke may say about the possible economic impact of the subprime mortgage problems during his congressional testimony this week. "Given the current weak sentiment about the dollar, the market may react to sell the dollar as soon as it catches any bearish tone from the testimony," said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking. Some traders were sceptical, however, that Bernanke would say anything to prompt a sell-off in the dollar. "I don't think he will say anything that would strongly suggest the possibility of the Fed cutting rates. I don't think the testimony will end up adding to bearish sentiment against the dollar," said a trader for a Japanese trust bank. (Additional reporting by Masayuki Kitano)