Dollar falls ahead of Jerome Powell's testimony before Congress

The US dollar fell against a majority of rivals on Wednesday, on profit-taking while investors await Federal Reserve Chairman's semi-annual testimony, which is expected to raise the odds of the Federal Reserve to tighten monetary policy soon.

The dollar index fell 0.3% to 92.51 points, after opening at 92.80 points, and hit a low of 92.82 points.

The US dollar gained 0.6% yesterday, thanks to renewed demand for the greenback following the release of strong inflation data.

Data showed yesterday that the US consumer prices rose at the fastest pace in nearly 13 years during June, which increased inflationary pressures on the US monetary policy makers increased the odds for start of reducing the bond-buying program.

At 16:00 GMT, Jerome Powell will deliver his testimony before the US House of Representatives Financial Services Committee in Washington, D.C.

This testimony is expected to deliver cues on the future of the US monetary policy, which might lead to earlier policy tightening by the Federal Reserve, and it might trim its bonds purchases program as an initial step to raise interest rates.