Euro turns higher, hits session high vs dollar

LONDON May 18 (Reuters) - The euro turned higher against the dollar on Monday, hitting a session high of $1.3501, as European share prices extended gains.

By 1201 GMT, the euro was hovering near $1.3498 EUR=, slightly up on the day after hitting a session low of $1.3425, according to Reuters data,. The euro also gained against the yen, up 0.7 percent at 129.35 yen EURJPY=R.

The FTSEurofirst 300 .FTEU3 was up 1.1 percent by midday trade after being down more than 1.0 percent earlier.

"There's a bit of a risk rally, sterling is the best performer and that has helped euro/dollar too," said a London-based trader. (Reporting by Jessica Mortimer and Tamawa Desai)