NEW YORK, (Reuters) - The dollar fell to trade little changed against the euro and rose versus the yen on Tuesday as a government report showed U.S. housing starts rose more than expected, diminishing demand for the greenback as a safe-haven.The U.S. housing data followed stronger-than-expected results from Germany's ZEW survey of sentiment towards the euro zone's biggest economy.

The tentative improvement in risk sentiment weighed on the dollar and the yen. Traders were wary, however, ahead of U.S. and Japanese central bank policy-setting meetings which both end on Wednesday.The housing starts report "is an encouraging sign for the U.S. economy," said Matt Esteve, a foreign exchange trader at Tempus Consulting in Washington...

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