* Greenback recovers after Trump says he wants 'strong dollar'
* Oil up on tight supply and weak dollar, Brent passes $71
* Wall St surrenders gains after Trump talks up dollar (Updates with reaction to Trump comments on dollar)
By Caroline Valetkevitch
NEW YORK, Jan 25 (Reuters) - The dollar reversed losses and U.S. stocks relinquished gains after U.S. President Donald Trump backed a strong dollar.
The U.S. dollar index .DXY was last up 0.17 percent against a basket of major currencies after Trump told CNBC in an interview in Davos, Switzerland, that he wants to see a strong dollar. comments came a day after U.S. Treasury Secretary Steven Mnuchin, also in Davos, made a major departure from traditional U.S. currency policy, saying "obviously, a weaker dollar is good for us as it relates to trade and opportunities."
Mnuchin's comments drove further losses in the dollar on Wednesday, putting it at three-year lows. want to walk back the yesterday's comments. They were salt in the wound," said Kathy Lien, managing director at BK Asset Management in New York.
But other factors have been driving the extended decline in the dollar, she said. "I think we are due for a rebound. What we are seeing now is some profit-taking."
The S&P 500 and Nasdaq were trading flat to down slightly, while the Dow was moderately higher. Dow Jones Industrial Average .DJI rose 105.07 points, or 0.4 percent, to 26,357.19, the S&P 500 .SPX lost 0.89 points, or 0.03 percent, to 2,836.65 and the Nasdaq Composite .IXIC dropped 11.09 points, or 0.15 percent, to 7,403.97.
The pan-European FTSEurofirst 300 index .FTEU3 lost 0.60 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.23 percent. euro was EUR= down 0.08 percent to $1.2396. Earlier, the euro rose to its highest in three years after the European Central Bank showed little concern about the single currency's hottest run in nearly four years.
The ECB kept its ultra-easy monetary policy unchanged. ECB President Mario Draghi cited the region's "solid and broad" growth and said inflation was likely to rise in the medium term. benchmark 10-year notes US10YT=RR last rose 9/32 in price to yield 2.6207 percent, from 2.654 percent late Wednesday. crude slipped 10 cents to settle at $65.51 a barrel, while Brent fell 11 cents to settle at $70.42. Brent earlier hit $71 a barrel. MSCI, Nikkei datastream chart
http://reut.rs/2sSBRiD yuan exchange rate
http://reut.rs/2DzJn6L Euro's urge
http://reut.rs/2DBiS0I GRAPHIC-Global assets in 2018
http://tmsnrt.rs/2jvdmXl GRAPHIC-Global market cap
http://reut.rs/2mcp7T1 GRAPHIC-Emerging markets in 2018
http://tmsnrt.rs/2ihRugV GRAPHIC-World FX rates in 2018
http://tmsnrt.rs/2egbfVh
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