LONDON, Sept 29: The dollar gained ground on the euro on Monday as the rescue of several European banks deepened fears for the fate of the global financial system.

The single European currency in late-day trade was at $1.4378, down from $1.4613 on Friday.

But the dollar fell against the yen, trading at 105.15 yen against 105.95 late Friday in New York.

“The credit crisis has finally arrived in the heart of Europe,” said analysts at the French bank BNP Paribas.

In London trade on Monday, the euro changed hands at $1.4378 against $1.4613 late Friday, 151.15 yen (154.92), 0.7973 pounds (0.7918) and 1.5771 Swiss francs (1.5934).

The dollar stood at 105.15 yen (105.95) and 1.0970 Swiss francs (1.0898). The pound was at $1.8038 (1.8452).

On the London Bullion Market, the price of gold edged up to $905 an ounce at the fixing from $902 late Friday.—AFP