US Bonds after rate hikes 2006

I’ve been investing in a mutual fund for US bonds. I’ve been paying into this fund for six months (a small amount). My question is, what can I expect after the interest rate hikes are over? We all know that “yields move inversely to bond prices” and my slight loss with this fund is proof of this! Yet I reasoned that after the hikes, prices will start to pick up. Was this a correct assumption?

As an aside (but I guess slightly related to the above), I am slowly moving out of my dollar-denominated mutual funds and moving into funds bought with other currencies. Does anyone else fear a drop in the value of the dollar?