Dollar loses ground as the fear of early Fed rate hikes recedes

* 10 US banks given the go ahead to start paying off the TARP money.

* US Wholesale inventories fall 1.4% in April to reach their lowest level since September 2007

* US Wholesale sales fall 0.4% in April to reach their lowest level since November 2005

* US IBD Economic optimism rises to 50.8 in June from 48.6 in May, back to levels seen in November 2008.

* Fed’s Fisher says global economy has “an awful lot of slack” US long-term rates rising on supply/demand factors, Treasury’s huge borrowing needs. Rising interest rates not tied to lack of confidence in Fed’s inflation fighting ability. US Economy “out of the end-zone” on drive for recovery.

* US Treasury’s Geithner says that the pace of decline in house prices has started to slow, but still challenging period ahead. Have seen encouraging signs in credit conditions in recent weeks.

The Dollar weakened across the board in North American trading. Earlier Eur/Usd had weakened to as low as 1.3857 in European trading after disappointing German IP data, but the rally was boosted by expectations in the US that markets had gone too far in expecting early Fed rate hikes. 1.4100 was the peak of trading.