21.06.201610:43:00UTC+00U.S. Dollar Higher After Yellen Hints At Gradual Rate Hikes

The U.S. dollar advanced against its key counterparts in New York deals on Tuesday, after Federal Reserve Chair Janet Yellen said 'gradual' pace of rate hike seems appropriate, as global headwinds die down.

A "cautious approach" on interest rates "remains appropriate" amid "considerable uncertainty" about the economic outlook, Yellen said in semi-annual testimony before the Senate Banking Committee.

Yellen said Thursday's Brexit vote in the U.K. could have "significant economic repercussions" if the British decide to leave the European Union.

"Even given moderate financial vulnerabilities, a number of possible external shocks, including if the United Kingdom chooses to leave the European Union in a pending referendum, could pose risks to financial stability," she told.

The greenback rose back to 1.4662 against pound, reversing from its early near 6-month low of 1.4783. The next possible upside target for the greenback may be found around the 1.45 area.

The greenback was trading higher at 104.61 against the yen, off its early 5-day low of 103.58. The next possible upside target for the greenback-yen pair is seen around the 106.00 mark.

Extending early rise, the greenback firmed to a 4-day high of 1.1243 against the euro, from a low of 1.1350 hit at 3:00 am ET. The greenback is seen finding resistance near the 1.10 level.

The greenback edged up to 0.9620 against the Swiss franc, after having fallen to 0.9576 at 6:30 am ET. Continuation of the greenback's uptrend may see it challenging resistance around the 0.98 area.

The greenback bounded off to 0.7129 against the kiwi, 0.7462 against the aussie and 1.2826 against the loonie, off its early 1-year low of 0.7169, 1-1/2-month low of 0.7513 and an 8-day low of 1.2762, respectively. If the greenback extends rise, it may locate resistance around 0.70 against the kiwi, 0.72 against the aussie and 1.30 against the loonie.