Beleaguered dollar bulls have cause for hope after absorbing the most punishing six months in a decade.

With a little help from President Donald Trump and Federal Reserve Chair Janet Yellen, the tide may be turning for the world's reserve currency. It's risen from its lowest level in more than two years, spurred by the Republican leadership's announcement of a long-awaited tax plan and the central bank's signals that it's looking past tame inflation and expects further tightening.

The rebound could be a sign of things to come in a quarter that's seen dollar gains for six straight years. But the currency has more than history on its side. The market has priced in little for the Fed beyond December and even less for progress on a tax overhaul, said Alan Ruskin at Deutsche Bank. That leaves the greenback primed for a bounce, potentially catching off guard speculators who are the most bearish since 2013.

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