Euro keeps recovering from 3-month trough

Euro rose in European trade against dollar away from three-month lows for second straight session following Fed chair Jerome Powell's testimony ahead of Congress, which cut the chances of earlier policy tightening. 

EUR/USD rose over 0.1% to 1.1850, with an intraday low at 1.1821, after closing up 0.5% yesterday, the first profit in three days and the largest in two months. 

The dollar index fell 0.1% on Thursday for a second session against a basket of major rivals. 

Fed Chair's Congressional testimony shot down speculation about earlier US policy tightening, hurting dollar's prospects. 

Powell said recent rise in inflation is related to reopening the economy, and is mostly transient. 

Powell will present the second part of his testimony ahead of Senate later today, with the dollar expected to face even more losses if Powell carried on his bearish sentiment.