Euro pares losses after Yellen's second day testimony

Euro pared its losses on Wednesday after hitting a five-month low as the dollar stopped rising against a basket of currencies following the second day of Fed Chair Yellen's Congress testimony, hovering at the opening.
 
EUR/USD last traded at 1.0583, compared to the opening of 1.0580, with a session-high at 1.0587, and a low at 1.0522.
 
The dollar backed off a five-week high against a basket of currencies, trading at the opening, after Yellen's second-day testimony pointed to the current monetary policy and how appropriate it is for the current conditions, while not mentioning rate-hike forecasts, snapping the dollar out of its winning streak and buoying the euro.
 
The dollar is till drawing support from strong U.S. data today, with consumer prices up by the most since mid-2013 as retail sales improve as well, underpinning the greenback.
 
On the other hand, the euro pared its losses but kept trading near a five-week low amid ongoing negative pressure from dollar's strength and political tensions in the Eurozone, curbing demand on European assets.