"The reopening trade is still very much alive," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. "And you're seeing that in the relative underperformance of the high-flying tech that did so well throughout the shutdowns."
"Things are now getting back to normal from a period of suppressed pricing," Pursche added. "Prices are getting back to their equilibrium. One month of price spikes does not make a trend."
"A lot of investors are worried about the stock market highs, but that doesn't mean it can't get higher, and the economic conditions are certainly set up for a positive equity environment," she told Bloomberg TV.
The U.S. currency - which appreciated this year, helped in part by a rally in U.S. Treasury yields - has come under pressure in recent sessions as yields have retreated.
Dovish Federal Reserve minutes released on Wednesday, which reiterated that the U.S. central bank was in no rush to raise interest rates, also weighed on Treasury yields.
The central bank ramped up buying of sovereign bonds after a surge in U.S. Treasury yields lifted borrowing costs in the bloc and threatened Europe's tentative recovery.
At 1500 GMT the rand was 0.48pc firmer at 14.5000 per dollar, its strongest level since Feb. 24 and poised to reach a one-year high as the bullish case gathered momentum.
The Australian dollar fell against the dollar, down 0.74% , while the New Zealand dollar was down 0.75%, both pausing their upward trajectory of the last two weeks.
The U.S. Dollar Currency Index, which measures the greenback against a basket of six currencies, was 0.181% lower at 92.473. The index fell as low as 92.134 earlier in the session.
Yields on the front end to the so-called belly of the curve were down, while those on the very long end were firmer. U.S. 10-year yields, however, dropped to a two-week low.
The US Dollar Currency Index, which measures the greenback against a basket of six currencies, was 0.101% lower at 92.213.
Upbeat European data on Wednesday showing euro zone business activity bounced back to growth last month, also supported the common currency against the greenback.
"My goal today is to definitively put that narrative to rest. It is simply wrong. Monetary policy has not and will not be conducted for these purposes."
The Fed's board members and the central bank's powerful chief are appointed by the president with approval of the US Senate, but the governors' long terms and protection from partisan dismissals are meant to insulate the central bank from political pressures.
"I don't think it matters. I think what matters is the outcomes we actually get," Barkin said.
The Fed's pledge not to raise rates or curb $120 billion in monthly bond purchases until the economy more clearly recovers "is quite explicit and outcome based," Barkin said.
It will take some time for economic activity and employment to return to levels that prevailed at the business cycle peak reached last February. We are committed to using our full range of tools to support the economy until the job is well and truly done.
The Fed now sees the US unemployment rate falling to 3.5%, roughly where it was before the pandemic, by the end of 2023.