FOREX-Dollar gains as oil falls, Paulson speaks

NEW YORK, July 22 (Reuters) - The dollar edged higher on Tuesday, reversing losses versus the yen and euro, helped by weaker U.S. crude futures and comments from U.S. Secretary Henry Paulson suggesting efforts are being made by the government to resolve the financial crisis.

The dollar rose to session highs against the yen to 106.72 yen JPY=, while the euro fell to session lows around $1.5879 EUR=. U.S. crude futures, meanwhile, fell more than 1 percent to $129.52 per barrel.

"Paulson continues to point out the efforts being made by U.S. officials to remedy the current financial crisis," said Michael Woolfolk, a senior currency strategist at The Bank of New York Mellon in New York.

"Moreover he believes Congress will pass legislation later this week regarding the GSE reforms. That is good for the dollar. The sooner this crisis is addressed, the sooner it will no longer be dollar negative." For Paulson comments, see [ID:nN22307943]. (Reporting by Gertrude Chavez-Dreyfuss and Nick Olivari; Editing by Theodore d'Afflisio)