Dollar rebounds ahead of Jerome Powell's Congress testimony

The US dollar rose against a basket of major currencies on Tuesday, resuming gains after taking a pause yesterday, as investors are still focused on the US Federal Reserve's expectations, ahead of Federal Reserve Chairman Jerome Powell's testimony before the US Congress.

The dollar index rose more than 0.3% to 92.13 points, after opening at 91.88 points, and hit an intraday low at 91.87 points.

The index lost 0.5% yesterday, posting its first loss in 5 days on profit-taking from a 2-month high of 92.40 points.

The greenback gained 2.0% last week, posting its fourth straight weekly gain, and the largest gain since September 2020.

This huge weekly gain came after the Federal Reserve stated that it expects 2 interest rate hikes in 2023, and raised its forecast for US GDP growth during the next 2 years.

At 18:00 GMT, Federal Reserve Chair Jerome Powell will testify on the Fed’s emergency lending programs and current policies before the House Select Subcommittee on the Coronavirus Crisis, via satellite.