Investing.com - The euro pulled back from session highs against the dollar on Tuesday after Federal Reserve Chairwoman Janet Yellen said she expects there to be "a great deal of continuity" in the bank’s policies, in prepared testimony to Congress.
EUR/USD hit 1.3683, the highest since January 29 and was last up 0.12% to 1.3661.
The pair was likely to find support at 1.3614, Monday’s low and resistance at 1.3715, the high of January 27.
In prepared remarks to the House Financial Services Committee, Fed Chair Yellen said that the central bank would taper the pace of its asset purchases at future meetings if the economy continued to improve as expected.
“Let me emphasize that I expect a great deal of continuity in the Federal Open Market Committee’s approach to monetary policy,” she said.
She added that the pace of the central bank’s bond purchases are not on a “preset course”, while reiterating that Fed plans to hold interest rates at zero “well past” the time the jobless rate falls below 6.5%.
Ms. Yellen said that "the recovery in the labor market is far from complete," despite progress made in the last year, with the unemployment rate, currently at 6.6%, still "well above levels" that Fed officials consider sustainable by a healthy economy.
The euro was trading close to two-week highs against the yen, with EUR/JPY rising 0.38% to 140.07.
Elsewhere, the dollar moved higher against the yen, with USD/JPY rising 0.27% to 102.53.