We still have a long way to go before they're competitive to the equity market.
The dollar index rose 0.16 percent, with the euro down 0.15 percent to $1.2348.
Craig Erlam, senior market analyst at OANDA, notes that the rally over the last couple of years has been "very strong and without any corrections of note".
"We certainly could be looking at a market that's going to have to get more comfortable with the potential for a higher rate of inflation and potentially higher interest rates".
As a result, he thinks that it's entirely possible that this has led to some "complacency", with investors perhaps "getting a little ahead of themselves".
Dubai's stock market closed 1.5 per cent lower and Abu Dhabi's shed almost 1 per cent on Tuesday in the region's third day of trading for the week.
The turmoil in global stock markets has echoes with what's been going on with bitcoin, the hugely volatile virtual currency, which rose exponentially to around $20,000 past year before a precipitous slump. They were last at 2.77 per cent.
Emerging market stocks lost 2.74 percent, but the iShares MSCI emerging markets exchange-traded fund jumped 3.3 percent.
New to the markets and want to find out more about trading stocks?
On Monday, bitcoin slid from around $11,500 to below $7,000, while the Dow Jones industrial average fell by a record 1,175 points. "During the selloff you got the natural reaction of bond yields going up but the moment you get some stability, yields zoom up again", Ahmed said.
- European stock markets are steadier Wednesday after the global tumble that began on Wall Street Friday.
GETTYUS and Asian markets suffered heavy losses overnight
The Dow Jones Industrial Average rose 567.02 points, or 2.33 percent, to 24,912.77, the S&P 500 gained 46.2 points, or 1.74 percent, to 2,695.14 and the Nasdaq Composite added 148.36 points, or 2.13 percent, to 7,115.88.
European stock markets mounted a modest recovery Wednesday but Wall Street appeared headed for more volatility a day after spectacular price swings kept breathless investors on the edge of their seats. The FTSE 100 index of leading British shares was down 1.8 per cent, while Germany's DAX was 1.9 per cent lower - both indexes are higher than where they started the session.
Shares tumbled in Asia on Tuesday after a wild day for USA markets that resulted in the biggest drop in the Dow Jones industrial average in six and a half years.
"This is not the end of the bull market, but it is the end of the super low volatility regime", said David Lafferty, Chief Market Strategist at Natixis Investment Managers.
Minutes after the bell to signal the start of trading, the FTSE 100 index of leading British shares was down 2.5 per cent at 7,151, while the CAC 40 in France slid 3 per cent to 5,127.
On Wall Street, all but two S&P 500 index sectors ended higher, with economically sensitive materials, technology and consumer discretionary indexes posting the biggest gains. It was a similar story on Germany's DAX, which was 3 per cent lower at 12,308.
Earlier, Taiwan's main index lost 5.0 percent, its biggest slump since 2011, Hong Kong's Hang Seng Index dropped 5.1 percent and Japan's Nikkei dived 4.7 percent, its worst fall since November 2016, to four-month lows.
That rout had wiped $4-trillion off world equities and sent investors scurrying for the safety of German and USA bonds, briefly reversing the steady rise in global yields.
The pan-European FTSEurofirst 300 index lost 2.4 percent and MSCI's gauge of stocks across the globe shed 1.9 percent.
Moreover, the rout in global bond prices seems to be reversing, with the yield on the benchmark 10-year Treasury note little changed Wednesday.
The dollar rose to its highest in more than a week against a basket of currencies as traders piled back into the greenback amid the rout in stocks.