Large U.S. multinationals should soon start showing the positive effects of the dollar's tumble in recent months, reversing the situation in the past few years when the greenback's strength hurt companies with significant foreign revenue.

SINGAPORE (Reuters) -The U.S. dollar rose alongside Treasury yields on Wednesday, which in turn kept pressure on the yen after the latest U.S. inflation report showed signs that President Donald Trump's tariffs were beginning to feed into prices.

Don't look now, but the dollar has been making a reversal even as the market remains risk-on. The U.S. Dollar Index is up for the 9th straight trading day and is on pace for its longest winning streak since Oct.

The dollar gained against the euro on Wednesday as traders bet that the Federal Reserve may be less likely to cut rates two times this year following an uptick in consumer prices in June, even though producer price inflation data on Wednesday was steady.

The European Commission advanced a $2.3 trillion budget proposal that would boost EU defense spending through the next three years.

It seemed that nothing could end the U.S. currency’s reign as the “safe-haven” for financial markets. Then came the Trump tariffs.

The only acceptable tariff on European Union exports to the United States would be zero as the bloc is already facing a detrimental exchange rate, the head of Italy's business lobby said on Wednesday.