Dollar pauses after recent rebound; euro and yen struggle on

London

THE dollar consolidated gains after hitting a one-month high on Thursday against a basket of currencies as US Treasury yields rose, prompting investors to unwind some of their dollar shorts.

Hawkish rhetoric by the US Federal Reserve has bond yields threatening to break out of their multi-month trading ranges, leaving market watchers dubious about a fundamental change in the outlook for the US economy.

"In our view, this is a corrective move higher and the long-term outlook for the dollar still remained l…