By Joe Manimbo of TravelexNEW YORK ( TheStreet) -- The bright spots are few and far between for the dollar as its major rivals find themselves sharply higher this morning. The euro continues to benefit from positive developments in local debt markets as Spain successfully went to the well for a 3.5 billion euro sovereign debt issue, and a second, shorter-term tender offer by the European Central Bank was well received. The combined events are boosting the single currency this morning, though the fact that private-sector European banks still have to rely on the ECB for liquidity, as opposed to the market, should keep the excitement contained. The Swiss franc was a big winner overnight as well. The yen continued higher this morning, reaching new highs for 2010 against the greenback. It again neared an eight-and-a-half year high against the euro. The yen's appreciation seems to be unnerving Japanese policymakers, who overnight warned that the yen's recent strength could very well undermine the tenuous economic recovery underway in Japan. This was on the heels of a positive report on Japanese manufacturing sentiment. The Swiss franc continues to benefit from the Swiss National Bank's retreat from its campaign of weakening its currency two weeks ago, as well as from safe-haven flows prompted by news that manufacturing activity in China had slowed in June. The news out of China also undermined the so-called commodity currencies this morning, particularly those of Australia and New Zealand. The Canadian dollar's gains were also limited because of the news. Sweden joined the ranks of central banks tightening monetary policy on Thursday as the Riksbank announced a 25-basis-point hike. The Kronor was marginally firmer on the news. Today is Canada Day and thus a holiday north of the border, though the U.S. data train rolls on. EUR: The single currency has firmed back near one-week highs against the buck as markets continue to favorably digest the combined results of yesterday's 132 billion euro tender from the European Central bank and today's 111 billion euro tender. The ECB announced that 78 banks took part in Thursday's issue of short-term funds. 171 institutions had taken part in Wednesday's operation. Expectations for both the number of participating banks and the amount that the banks would require had been higher, which is leading traders to believe that the state of eurozone banks may not be as dire as initially thought. The fact that banks in the eurozone are unable to finance their operations without the assistance of the ECB should remain a big concern and should keep the euro's upside limited until things return to some level of normalcy -- i.e., when banks can draw liquidity from the market, as opposed to the government.