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Ben Bernanke:Bernanke's testimony.The dollar turned lower against the euro, pound and yen Wednesday as investors digested Federal Reserve chairman Ben Bernanke's testimony on monetary policy.

What prices are doing: The dollar slid 0.7% against the euro to $1.3605 and 0.2% against the British pound to $1.5452. The greenback also fell 0.3% against the yen to ¥89.98.

The dollar was higher against the euro and the pound Tuesday following a report that showed U.S. consumer confidence fell sharply in February, snapping a three-month streak of improvement. The downbeat figures sparked concern over the strength in economic recovery, triggering investors to turn to the buck for its safe haven appeal.

What's moving the market: Fed chairman Ben Bernanke headed to Capitol Hill Wednesday for his two-day semi-annual testimony before the House Financial Services Committee. He warned lawmakers that although government action has launched economic recovery, the sluggish job market is still a concern.

He reiterated that the Fed's benchmark lending rate, which impacts the price of consumer loans, will continue to hold near zero. It has stood near the historic low since December 2008.

Last week, the central bank raised its discount rate, which is what banks pay to borrow direct from the Fed, to 0.75%. The move sparked hopes among investors that the Fed would move to tighten monetary policy and raise the benchmark rate sooner than expected. That confidence pushed the dollar higher against its rivals.