USD Erases Earlier Gains and Closes Lower

The U.S. Dollar (USD) declined on Wednesday after fluctuations, amid a rise in Treasury yields, the market reacting to the approval of a new Coronavirus vaccine, as well as the testimony of the Federal Reserve Chair Jerome Powell in front of the House of Representatives.

The Dollar Index (DXY), which measures the greenback’s performance against a basket of six major international currencies, finished lower by 0.12% at 90.06.

The index, which moved in a range between 89.98 and 90.43 after closing Tuesday at 90.17, spent most of the European session in the negative territory, before rising during the American session and turning to gains before turning to the negative side and closing down.