The yen and the dollar are topping the other major currencies today
The past month saw the dollar hammered across the board, but we're starting to see some signs of recovery. Dollar sentiment may still be fragile, but if anything the last week or so has seen some form of stability in the greenback.
Cable has fallen back below 1.3900 while EUR/USD is trading near 1.2300 levels, as the dollar index starts to climb back towards 90.00 - and away from the lows posted this year.
Recent rise in bond yields will also start to play into investors' strategies, as if US 10-year yields breach 3% and head higher, it could prompt more flows back to the US and away from emerging markets. That could be a major positive factor for the dollar.
While it's still a bit early to call it a comeback, it's definitely a positive sign for dollar bulls and even though the yen may be outperforming the dollar today, the recovery in the dollar index is surely a welcome sign.
