Dollar musters slight gains
U.S. currency up slightly as Treasury, Fed unveil support plan for Fannie and Freddie.
NEW YORK (CNNMoney.com) -- The dollar regained a little lost ground against most foreign currencies Monday as traders cheered the U.S. government's plan to rescue ailing mortgage finance firms Fannie Mae and Freddie Mac.
The 15-nation euro bought $1.5910 in Monday morning European trading, down from its level of $1.5967 late Friday in New York. The dollar crept down near its all-time low level of $1.6018 against the euro Friday but recovered some Monday.
The British pound advanced against the dollar, however, buying $1.99441 from $1.9908 in the previous session.
The dollar gained against the Japanese yen, buying ¥106.13, up slightly from ¥106.01 late Friday.
The U.S. Treasury Department and the Federal Reserve announced a plan Monday to support government-backed mortgage financing firms Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500), which are responsible for about half the nation's home-loan debt.
The plan would give the two companies, which hold or guarantee nearly $5 trillion worth of mortgages, a bigger line of credit with the Treasury - and allow Treasury to buy stock in the firms.
The companies can also access the Federal Reserve Bank of New York for funds if necessary, giving the firms the same access to funds that commercial banks and Wall Street firms. 
