The U.S. dollar fell against the euro in late trading Tuesday after China announced that it would raise rates. Investors have also become less worried about the unrest in Egypt, moving away from the dollar and looking to invest in riskier currencies. By yesterday's close, the USD fell against the EUR, pushing the oft-traded currency pair to 1.3630.

China's central bank said Tuesday that it would raise deposit and lending interest rates by a quarter percentage point, the second time China has raised rates in over a month.
The U.S. dollar had been gaining against the euro since late January when protests erupted on the streets of Egypt and investors were looking to invest in safe havens, such as the U.S. dollar. But investor concerns about Egypt have eased somewhat, analysts have said, pushing riskier currencies higher against the dollar Tuesday.

Looking ahead to today, the most important economic indicator scheduled to be released from the U.S. is the Crude Oil Inventories figure at 15:30 GMT. Traders will be paying close attention to today's announcement as a stronger than expected result may boost the USD in the short-term. Traders are also advised to follow Fed Chairman Bernanke's testimony at 15:00 GMT. This testimony is very likely to impact the dollar's volatility. Traders are advised to watch closely, as this is likely to set the pace of the dollar going into the rest of the day's trading.