The U.S. dollar rose to a two-week highs against the euro in Europe on Thursday, as political - tension in Ukraine and Russia curbed risk appetite and weighed on the already under pressured currency †from recent interest rate cut talk. In the latest update on Ukrainian crisis, Russian President Vladimir Putin has reportedly ordered an urgent military drill to test the combat readiness of the armed forces across western and central Russia on Wednesday in a show of strength over the political impasse in Ukraine, prompting† a frank warning from the U.S. government . Euro fell as much as 0.21 percent so far in the day, hit by continued geopolitical tensions in Russia and Ukraine, the EURUSD was last seen trading at $1.36578 after opening at $1.36852. The pair so far hit a session high at $1.36944 and session low at $1.36420. There was plenty of additional pressure, including a downward revision to Spanish fourth-quarter GDP figures, alongside with reports hsowing the European Central Bank will provide additional conventional policy easing for the price stability mandate to be met. The ECB, which meets next week is under pressure to cut interest rates again and dip back into its unconventional policy cupboard to ensure the Eurozone doesn`t become mired in deflation. On data front, Euro-area economic confidence report released earlier in the day showed an unexpected increase in sentiment across Europe in February, led by the services industry, easing pressure on the ECB to take action in March. German inflation data are due later in the session, while investors will remain cautious ahead of Eurozone inflation figures on Friday amid concerns over the threat of deflation in the euro-area. The EURJPY pair declined to •138.960 after opening at •140.009. the pair so far hit a session high at •140.211 and session low at •138.783. Yellen in Focus The dollar also gained on expectations Federal Reserve chair Janet Yellen will reassure traders that the central bank will not pause tapering its bond-buying program in testimony before the Senate Banking Committee on Thursday. Later in the day, the spotlight returns to Fed Chair Janet Yellen as she testifies before the Senate Banking Committee. This coupled with a marginal improvement expected of January's Durable Goods Orders and Frebruary's jobless cliams. Data may continue to push the U.S. Dollar higher after the currency secured its strongest gain in a month yesterday. The dollar index, which tracks the dollar's movements versus a basket of major currencies, rose to a session high of 80.57 before consolidating at 80.47 well above a session low of 80.35 and a session opening at 80.42. The Japanese Yen moved higher today, as rising political tensions in Ukraine fuelled risk aversion, supporting yen's safe haven demand. Yen reversed last session's losses after the U.S. Commerce Department reported that new home sales rose to their highest level since July 2008 in January, coming after a recent series of disappointing U.S. economic reports raised doubts over the strength of the recovery. Yen jumped 0.57 percent against the U.S. dollar on Thursday, trading at •102.037 after opening at •102.339. The USDJPY pair so far hit a session high of •102.435.