NEW YORK, Oct. 16 (Xinhua) -- The U.S. dollar rose against major currencies on Thursday as investors worried that financial rescue actions could not prevent a global recession.

    The Federal Reserve reported Thursday that U.S. industrial production plunged 2.8 percent in September, much higher than a 1 percent drop in August.

    The Fed estimated that disruptions related to the hurricanes Gustav and Ike accounted for about 2.25 percentage points of the total drop. Collapse of housing market, credit problems and weaker demand from the slowing U.S. economy also hit industrial production.

    Citigroup and Merrill Lynch both reported billions in losses for the third quarter due to steep credit and mortgage-related write-downs. The Federal Reserve Bank of Philadelphia said on Thursday its index of business conditions in the U.S. Mid-Atlantic region fell in October to -37.5 from 3.8 in September.

    Mounting fears about recession drove investors away from risky assets, sending the dollar higher as a safe haven currency.

    The euro bought 1.3428 dollars in late New York trading compared with 1.3521 dollars it bought late Wednesday. The British pound fell to 1.7286 dollars from 1.7328 dollars.

    The dollar rose to 1.1369 Swiss francs from 1.1361 Swiss francs, and rose to 101.07 Japanese yen from 100.79 Japanese yen. It rose to 1.1888 Canadian dollars from 1.1871 Canadian dollars.