The dollar rose to a six-day high against a basket of major currencies on Wednesday, rebounding further from a five-week low touched the prior session, supported by quarter-end flows into the greenback as investors also shook off fears of a trade war.
The dollar index, which measures the greenback against a basket of six other major currencies, was up 0.81 percent at 90.09. The index has rallied nearly 1 percent since hitting a five-week low of 88.942 on Tuesday.
"I think what we are seeing is a continuation of bit of a theme that started earlier this week, that is, we are seeing a slight reduction in the overall level of concern about a looming trade war," said Omer Esiner, chief market strategist with Commonwealth Foreign Exchange in Washington.
Global markets were shaken this month after U.S. President Donald Trump moved to impose tariffs on Chinese goods and Beijing threatened similar measures. But fears of a full-blown trade war have eased on hopes negotiations can bring a compromise.
"That has translated into a moderating sense of concern and that's why we are seeing kind of an unwinding of safe-haven bets," Esiner said.
"We did see a rather abrupt turnaround in U.S. equities yesterday, but that was mostly tech-driven as opposed to a sell-off that was driven by broader concerns," Esiner said.