Dollar scores modest gains after Yellen's testimony

The U.S. dollar rose today versus its rivals but tentatively after getting buoyed by Yellen's testimony ahead of Congress, asserting in it the central bank's dependence on economic data and inflation forecasts to set its policy.  

The dollar index, which measures the U.S. unit against a basket of rivals, last traded at 96.36, up from the opening level of 96.05, with an intraday high at 96.73, and a low at 95.84. The index hit a four-month low yesterday at 95.84. 

Yellen said that a better-than-expected improvement in U.S. economic data will push the bank to accelerate its scheme of rate hikes, and the opposite is true, which comes as Yellen signals that current conditions don't support growth.  

As for inflation, Yellen expects it to remain low under the pressure of falling oil prices, but pointed that in the medium term, inflation rates are expected to reach the bank's target of 2%. 

Dollar's rise after Yellen's testimony comes as expectations remain modestly upbeat for the U.S. economy with no treacherous knocks that would dissuade the Fed from hiking rates, but current tensions in financial markets could force the bank to delay its hikes this year.