Euro jumps higher against dollar

LONDON: The euro raced higher against the dollar on Monday, before cooling, as foreign exchange dealers reacted to the US financial crisis, following the collapse of investment giant Lehman Brothers.

The European single currency had soared to 1.4481 dollars in Asian trading from 1.4229 dollars late in New York on Friday.

In early European deals, the European single currency stood at 1.4271 dollars.

World financial markets endured volatile trade Monday as US investment banking giant Lehman Brothers filed for bankruptcy after failing to find a buyer having been crippled by the US subprime housing crisis and credit crunch.