Euro sharpens decline as dollar rebounds following Yellen's testimony

Euro fell on Tuesday for the fourth session in a row, widening the losses after the dollar index rebounded following Fed Chair Yellen's bullish testimony ahead of Congress, buoying the greenback and hurting the euro.
 
EUR/USD last traded at 1.0576, down from the opening of 1.0599, with an intraday high at 1.0634, and a low at 1.0562.
 
Euro fell to a three-week low after the dollar snapped its losing streak today, drawing support from Yellen's assertion the central bank will keep increasing rates gradually to curb inflation.
 
On the other hand, the statements raised the odds of more rate hikes this year despite Yellen's refusal to mention how many rate hikes she wants the Fed to do this year, but the bullish stance was enough to hurt the common currency.
 
Political tensions in the Eurozone are also hurting the euro, adding to the policy divergence between the Federal Reserve and the European Central Bank.