Dollar short positions cover rebound, concerns over U.S. bonds suppress rise.

On May 27, capital market strategist Mark Chandler said in a report that the U.S. dollar exchange rate rose as investors closed their previous short positions against the U.S. dollar. He said market speculation that Japan will adjust its government bond issuance program to curb the recent surge in ultra-long-term bond yields has fueled a short-covering rally in the US dollar. Japanese long-term bond yields have fallen sharply, with the yen the weakest performer, despite the US dollar rising against all G10 currencies today. However, uncertainty over U.S. tariff policy and concerns about unsustainable U.S. government debt prevented the dollar from recovering to the key 100 level.