The dollar edged higher Tuesday after strong U.S. economic data and a weaker reading from Germany.

The WSJ Dollar Index, which measures the currency against a basket of 16 others, snapped a two-day losing streak, rising less than 0.1% to 83.60. The currency also advanced less than 0.1% against the euro.

The dollar rose after the Federal Reserve said Tuesday that U.S. industrial production rose in March, a sign of underlying strength in the economy. Output at factories, mines and utilities rose a seasonally adjusted 0.5% from the prior month while economists surveyed by The Wall Street Journal had expected the index to rise 0.4%. February industrial production was revised to a 1% gain.

Earlier, the euro weakened as the ZEW Index, which measures expectations for the German economy, dropped sharply in March, reaching its lowest level since 2012.

The dollar was also supported by rising stock prices and higher bond yields, which help make the currency more attractive by offering higher returns.