The dollar pulled back on Thursday, having risen along with bond yields after President Donald Trump proposed the biggest shake-up of the U.S. tax system in three decades and data bolstered calls for another Fed rate hike this year.

As the dollar’s strength ebbed, emerging market currencies and commodities also began to recover, while Wall Street was expected to see a lackluster start having risen on Wednesday in reaction to Trump’s tax blueprint.

European stocks and Japan’s Nikkei .N225 gave it a cautious thumbs-up too.

Banks .SX7P rose to seven-week highs, though they then began to fade, while miners struggled .SXPP and underwhelming results from one of Europe’s biggest fashion chains, H&M, (HMb.ST) weighed on retailers. [.EU]

The prospect of higher U.S. debt levels and expectations of a Fed hike sent 10-year Treasury yields to their highest since mid-July, with the 2-10 year yield curve steepening to its highest in a month.

“The market had given up on the Trump reflation trade and this is coming back with a bit more detail on tax plans,” said Commerzbank analyst Rainer Guntermann.

“At the same time, this gives the Fed more ammunition to hike rates in the coming months.”

The week’s dollar rally remained largely intact despite its pre-U.S. trading pause.

It was flat at 93.34 against a basket of currencies .DXY. It has gained 2.5 percent since hitting a 2 1/2-year low of 91.35 in mid-September.

Its earlier gains had been most marked against Japan’s yen, as it probed above 113 yen. Traders also eyed a jump in Japan’s 10-year government bond yield toward levels at which the Bank of Japan would be expected to buy bonds to maintain its zero percent target for long-term rates.