LONDON, Sept 8: The dollar jumped to an 11-month high against the euro Monday in volatile trading on news that the US Treasury was to bail out foundering US mortgage finance giants Fannie Mae and Freddie Mac.

The single Euorpean currency fell at one point in late-day deals in London to $1.4118, its lowest reading since October 10. It later traded at $1.4121 against $1.4260 late Friday in New York.

The dollar also gained against the yen, rising to 107.95 yen from 107.65 on Friday.

Analysts said the unprecedented US takeover of Fannie Mae and Freddie Mac, which also sparked a surge on global stock markets on Monday, offered hope for an easing of a credit and housing crunch, and an end to worldwide financial jitters.

In London trading on Monday, the euro changed hands at $1.4121 against $1.4260 late on Friday, at 152.52 yen (153.57), 0.8055 pounds (0.8075) and 1.5976 Swiss francs (1.5955).

The dollar stood at 107.95 yen (107.67) and 1.1304 Swiss francs (1.1186). The pound was at 1.7540 dollars (1.7653).

On the London Bullion Market, the price of gold fell to $808 per ounce at the fixing from $808.50 late on Friday.—AFP