Dollar falls near 2-1/2 year low ahead of Powell's testimony.

The US dollar fell on Tuesday, resuming its losses after taking a breather yesterday, to dive once again near the lowest level in two and a half years, weighed down by weak safe-haven demand and stimulus expectations, ahead of a spate of data from the US, including Fed Chair Jerome Powell's congressional testimony.

The dollar index fell 0.3% to 91.60 points, after opening at 91.87 points and hitting an intraday high of 91.94 points.

The index gained 0.1% yesterday, to take a breather after hitting its lowest level in two and a half years at 91.50 points.

The greenback's lost 2.1% during November, the first monthly loss in three months and the biggest loss since July.

This came due to a slowdown in demand for the US dollar as the best alternative investment, as the market sentiment strengthened.

The market sentiment improved thanks to positive news about Covid-19 vaccines, chief among these is Moderna's promising vaccine that showed 100% effectiveness.

While the political tensions eased in the US over the presidential election after a smooth transition of power from the current Republican President Donald Trump to President-elect Joe Biden began. 

The US Federal Reserve is widely expected to take further monetary stimulus measures to support the coronavirus-battered economy, which is currently suffering its worst economic crisis since the 1930s Great Depression.

The ISM manufacturing PMI is expected down to 57.9 in November from 59.3 points in October.

At 15:00 GMT, Federal Reserve Chair Jerome Powell will testify on the CARES Act before the US Senate Banking Committee.