TOKYO - The dollar firmed against the euro and yen in Asian trade Monday as US lawmakers reached a consensus on an unprecedented bailout of Wall Street, dealers said.

They said the euro was bogged down by fears that Europe's own financial system was in trouble.

The dollar firmed to 106.77 yen in Tokyo morning trade from 105.95 in New York late Friday. The euro slipped to 1.4499 dollars from 1.4613 and 154.81 yen from 154.92.

The greenback "should receive a short-term boost" from the 700-billion dollar bailout reached Sunday by US lawmakers, wrote NAB Capital strategist John Kyriakopoulos in a market note.

"Ultimately, the extent to which the bailout package eases bank funding pressures and reduces the risk of a global recession is key" for currencies trading against the dollar, he added.

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.

But the dollar's gains against the yen could be short-lived depending on future signs out of the US economy.

The US government on Friday releases jobs data for September. The unemployment rate jumped to a five-year high of 6.1 percent in August.

"The dollar would be sold off if the jobs data turn out to be bad," Sumitomo Mitsui Banking Corp. chief economist Etsuko Yamashita told Dow Jones Newswires.

The euro fell on concerns that major European banks are the next major victims of the US-bred credit crisis, dealers said.

Belgium, the Netherlands and Luxembourg rode to the rescue Sunday of financial group Fortis with an 11.2 billion euro bailout.

Spanish banking giant Santander meanwhile said that it will take over the retail deposits and branch network of British bank Bradford & Bingley.