Dollar jumps against euro before US bailout vote
The dollar shot up against the euro and also rose versus the yen on Monday as US lawmakers prepared to vote on whether to rubber-stamp a 700-billion-dollar bailout of stricken Wall Street banks.
The European single currency slumped to 1.4362 dollars from 1.4613 in New York late on Friday.
Against the Japanese currency, the dollar rose to 106.16 yen from 105.95.
Gold prices dropped below 900 dollars an ounce as investors pulled out of havens amid the prospect of the US bailout being approved.
US lawmakers agreed over the weekend to the 700-billion-dollar bailout and sent the legislation for Congress to start voting on Monday.
"After much wrangling the US Congress has apparently agreed on the US administration's 700-billion-dollar rescue plan," said Calyon analyst Mitul Kotecha.
"Until now the main opposition was from House Republicans but they are now supporting it following changes to the initial proposal. The House is likely to consider the plan as early as today and the Senate will vote by Wednesday."
According to draft legislation, the government would be able to buy up troubled assets from banks, pension plans, local governments and other firms while allowing oversight and regulations.
It would also give taxpayers an ownership stake -- meaning they would share in any future profits of participating companies -- limit compensation for company executives and allow the government to help prevent home foreclosures.
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