Dollar hits 12-yr low below 97 yen on credit fears

TOKYO (Reuters) - The dollar tumbled below 97 yen on Monday to a 12-year low as investors feared more financial institutions could become casualties in the broadening U.S. financial crisis.

The dollar took a hit, gold vaulted to record peaks around $1,020 and Treasuries <US/> surged after JPMorgan Chase (JPM.N: Quote, Profile, Research, Stock Buzz) said it would acquire troubled U.S. investment bank Bear Stearns BSC.N and the Federal Reserve launched more measures to ease the severe strains gripping markets.

The dollar slid as low as 96.56 yen, tumbling more than 2 percent on the day, before clawing back to near 97.10 yen. The euro pushed to a record high of $1.5808, up 1 percent on the day.

(Reporting by Eric Burroughs; Editing by Rodney Joyce)