FOREX-Dollar inches up but dogged by credit worries

* Dollar clings to gains vs euro, yen up on Asia stock fall

* Oil prices down this week, but credit concerns resurface

* G8 comments on dollar eyed

By Chikako Mogi

TOKYO, July 8 (Reuters) - The dollar inched up against the euro on Tuesday, supported by a sharp drop in oil prices this week, even as investors fretted about a further deterioration in the financial system's health.

Credit concerns resurfaced on Monday after a Lehman Brothers report said a pending accounting change could force Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research), the two largest U.S. mortgage funders, to raise a combined $75 billion in capital at a difficult time. [ID:nN07435475]

The report on Fannie Mae and Freddie Mac drove Wall Street shares down and squashed a dollar rebound spurred after oil slid over $4 a barrel on Monday.

Hideki Amikura, deputy general manager at Nomura Trust and Banking, said the dollar's resilience despite the dire capital situation of Fannie Mae and Freddie Mac could reflect market hopes for a government bail-out.

"Despite the seriousness of the issue, the market remains calm, suggesting there may be expectations of the use of public funding to support these institutions," he said, adding that the dollar was likely to stay in a 106-108 yen range this month.