After timid US consumer confidence data because of investor's support for the testimony from Federal Reserve Chairman Ben Bernanke, the dollar value increased on Wednesday, while the currencies, like Australian dollar, declined to lowest for the day in European trade, following fall of Asian shares and European in early trade.

The Euro drift near a nine-month low against dollar at $1.3540 resulting from poor German business sentiment data released on Tuesday and Greece's public finances keeping it exposed to more losses. Passive trading is expected by the analysts prior to initiation of two days of Congressional testimony.

Johan Javeus, Chief Currency Strategist at SEB in Stockholm said, "It's still a risk-averse situation. Stocks were down in Asia, and the yen and the dollar were higher after the consumer confidence figures disappointed the market. There's also some nervousness about what Bernanke is going to say today. Fed needed to make clear to the market that last week's raising of the discount rate should not be interpreted as a monetary tightening move".