The greenback, which rose on Tuesday after Federal Reserve Chair Janet Yellen said the Fed needs to continue gradual rate hikes despite broad uncertainty about the path of inflation, added to gains on Wednesday after better-than-expected USA core capital goods data.
Trump proposed the biggest tax overhaul in three decades but offered scant details about how to pay for the cuts without dramatically driving up federal deficits.
The US equity markets reacted positively to a more detailed framework of the Trump administration's tax reform plan, "most notably Tech stocks expected to benefit from a repatriation tax holiday" noted Mike van Dulken.
But the plan's release, along with recent hawkish rhetoric from the U.S. central bank, has raised the likelihood of a USA rate increase by December to 70 per cent compared with less than a third a month earlier.
Perceived chances of a hike at the Fed's December meeting hovered around 80 percent on Wednesday from 72 percent on Monday, according to the CME Group's FedWatch tool.
US bond yields jumped with the yield on two-year notes US2YT=RR rising to a nine-year high of 1.49 percent in anticipation of a rate rise in December.
Micron Technology jumped 7.34 percent after the company reported a better-than-expected profit and forecast results above estimates.
Interest-rate-sensitive and dividend-paying sectors declined.
"The idea that Trump could be reaching across the aisle, talking about tax cuts to middle and low income households, if it comes to pass, we are talking a pretty material fiscal boost to the USA economy".
Wall Street looked set to open higher, index futures showed.
The pan-European FTSEurofirst 300 index rose 0.4 percent and MSCI's gauge of stocks across the globe gained 0.1 percent.
European banks rose 2 percent and hit their highest in 7 weeks. The euroEUR= hit a six-week low of $1.1717 as the dollar broadly gained, and last traded at $1.1729, having shed 1.9 percent so far this week.
"It really is an extension of the rally kicked off by the Fed last week", said Mazen Issa, senior FX strategist at TD Securities in NY, referring to the Fed's meeting where it signaled it may raise rates for a third time this year.
New orders for US -made capital goods increased more than expected in August and shipments maintained their upward trend, pointing to underlying strength in the economy.
The prospect of higher USA debt levels and expectations for another Fed hike had sent 10-year Treasury yields to their highest since mid-July, with the 2-10 year yield curve steepening to its highest in a month.
The US 10-year Treasury yield rose to 2.3590 per cent, its highest level since mid-July and was nearing the top end of a trading range established since early May.
Brent LCOc1 eased to $57.61 a barrel, down from Tuesday's 26-month peak of $59.49, while U.S. West Texas Intermediate crude (WTI) CLc1 fetched $52.05 per barrel having struck five-month high of $52.43 also on Tuesday.
About 6.55 billion shares changed hands in US exchanges, compared with the 5.91 billion daily average over the last 20 sessions.