Dollar mixed on weak US economic data

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NEW YORK (CNNMoney.com) -- The dollar rose against the euro Wednesday as investors flocked to safety following weak economic data.

At 4:55 p.m. ET, the dollar was up 0.23% against the 15-nation euro, which was trading at $1.3229.

Risk aversion increased as stocks churned after two days of weak economic reports. The stock market had enjoyed a five-week run on optimism that the economy is closer to stabilizing. By 4 p.m., the Dow Jones industrial average (INDU) climbed back 109 points, or 1.4%.

On Wednesday, the government reported that industrial production fell 1.5% in March, after falling a revised 1.5% in February, showing the economy contracted sharply in the first quarter. It also said that the Consumer Price Index fell 0.4% over the past year, the first year-over-year decline since August 1955.

Investors view the dollar as a less-risky alternative to assets like stocks and high-yield currencies, which are more volatile. As a result, the dollar often advances on gloomy economic news.

The euro came under pressure after the European Central Bank said it will announce a package of "non-standard measures" in May, though details are unclear.

The greenback fell 0.72% against the British pound, which rose to $1.5003. Meanwhile, the Japanese yen lost 0.4% against the dollar, falling to ¥99.38.