The dollar crept higher on Wednesday, a day after dropping to a three-week low against a basket of major currencies amid a repricing of expectations of U.S. Federal Reserve rate increases and concerns about U.S. President Donald Trump's ability to deliver a promised fiscal boost.
The dollar index, which measures the greenback against a basket of six major currencies, was up 0.26 percent at 99.757. It fell to a low of 99.465, its lowest since March 28, on Tuesday.
"You are seeing a little bit of a relief rally today, but it is really nothing compared to the weakness we have seen in the dollar over the last three to four weeks," said Minh Trang, senior currency trader at Silicon Valley Bank in Santa Clara, California.
U.S. rate repricing, on the back of weaker-than-expected economic data, and worries about the Trump administration's ability to achieve tax and fiscal reforms, have hurt the dollar in recent weeks, Trang said.