Dollar higher against euro, sharply lower against yen

NEW YORK, Oct. 6 (Xinhua) -- The dollar rose against the euro and the pound, but fell sharply against the yen on Monday amid worries over the financial crisis.

European and U.S. stocks crashed on Monday as investors worried that the credit crisis would hit global economy. There was growing realization that the 700 billion dollars financial bailout plan would not be a quick fix to troubled credit market and U.S. economy. President Bush signed the bailout plan into law soon after the House of Representatives approved it Friday.

Currency trading was still dominated by risk aversion on Monday, sending the yen higher against high-yielding currencies. Investors unwound so-called carry trades, where they took out loans in Japanto take advantage of its low interest rate. The euro kept falling after governments across Europe rushed to rescue large banks over the weekend.

The euro bought 1.3457 dollars in late New York trading compared with 1.3835 dollars it bought late Friday. The pound fell to 1.7388 dollars from 1.7784 dollars.

The dollar rose to 1.1480 Swiss francs from 1.1264 Swiss francs, rose to 1.1061 Canadian dollars from 1.0796 Canadian dollars. The greenback touched a session low of 100.24 yen before recovering to100.56 Japanese yen, still much lower than 105.35 Japanese yen it bought late Friday.