Is it good or bad or somewhere in between

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This was my response to a forum question, and below in bold is follow up question from the professor, help please.

The US dollar rose to a four month high against a basket of other major currencies, as for the first time since 2014, the bond yields rose above 3%. The US dollar index, which measures against a basket of six other major currencies rose .42% to 90.95 which is in fact its highest since January 12.

This was partly boosted by rising US yields and the prospect of rate hikes by the Federal Reserve. For investors searching for yield, the possibility of higher interest rates make the dollar even more attractive.

The dollar also rose to a two and half month high against the Yen (up .34% to 109.18), while the Euro fell to a two month low of .39%.

You are absolutely correct with your observations about the 10 year Treasury yield. Please discuss what this implies? Is it good or bad or somewhere in between? What about the impact on MNEs? Do they react to this or not?

Reference no: EM131967495

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