Investing.com - The U.S. dollar rose against its Canadian counterpart on Wednesday, after Federal Reserve Chair Janet Yellen said that financial conditions have become less supportive to growth, while declining oil prices continued to weigh on the Canadian currency.
USD/CAD hit 1.3821 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3917, gaining 0.36%.
The pair was likely to find support at 1.3704, the high of February 5 and resistance at 1.3980, the high of February 8.
In prepared remarks released before her testimony to the House Financial Services committee, Fed Chair Yellen said if the economy were to disappoint, a lower path of the Federal Funds rate would be appropriate.
Her testimony to the House Financial Services Committee will start at 15:00GMT, or 10:00AM ET.
Yellen is expected to defend the U.S. central bank's first rate hike in a decade last December and likely insist that further rises this year remain on track, albeit at a slower pace.
Meanwhile, the commodity-related Canadian dollar remained under pressure as oil prices dropped back below $28 a barrel on Wednesday.
The loonie was higher against the euro, with EUR/CAD slipping 0.14% to 1.5637.