Dollar Bounces Back as Bond Rally Loses Steam

The US dollar rebounded from its three-month low on Tuesday, as the bond market's recent rally showed signs of slowing down.

This pause in the bond rally removed some downward pressure on the currency, according to market data. The dollar index, which measures the greenback against a basket of major currencies, rose 0.3% to 103.5, recovering from its weakest level since early February.

The recent strength in the bond market was driven by expectations that the Federal Reserve may cut interest rates later this year. However, comments from Fed officials have been mixed, leaving traders uncertain about the timing and scale of potential cuts.