Yes, it can show you the current location as well. If you tap on the route, you get a little drop-down icon drawer; one of the options is "map pin", which will show you a map of the route with you, the bus, and the stops for that direction.

Sliding the route to the right is a shortcut for that as well. (Sliding to the left switches between directions/branches, in case you want the bus to Harvard instead of the bus to Kendall; in map mode, tapping on the route info bar does the same.)