Dollar strengthens

NEW YORK: The dollar inched higher from a three-week low on Wednesday, helped by falls in the euro and sterling, even as U.S. data eased concerns about a slowdown in the world´s largest economy.

Investors, however, remained cautious about the greenback because of tension in the Middle East and a U.S. trade dispute with China.

For now though, stronger-than-expected U.S. housing starts in March helped the dollar, as did a positive reading on industrial production.

"It seems like earlier negative readings pointing to a potential contraction have been offset by higher-than-expected U.S. industrial production and housing starts," said Juan Perez, senior currency trader at Tempus Consulting in Washington.

"For the first time in a few weeks of mixed economic data, the dollar is finally being rewarded because the data is finally coming out better than expected," he added.

The dollar earlier fell to a three-week low against a currency basket after President Donald Trump said on Monday that China and Russia were trying to devalue their currencies. Investors interpreted Trump´s comments as a nod to having a weaker currency.