The dollar rose from a three-week low on Tuesday, helped by falls in the euro and sterling, even as investors remained cautious about the greenback because of tension in the Middle East and a U.S. trade dispute with China.
"The weakness in the euro and sterling is mainly driving the dollar higher at this point, although there are other factors as well," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
Stronger-than-expected U.S. housing starts in March also helped the dollar, as did a positive reading on industrial production.
Investors interpreted Trump's comments as a nod to having a weaker currency. Treasury Secretary Steve Mnuchin, however, clarified Trump's comments in an interview with CNBC, saying the U.S. president's remarks were a warning to those countries against devaluing their currencies.
"The dollar found support from comments from Treasury Secretary Mnuchin, who dialed back some of the president's comments from yesterday," Esiner said.