CURRENCIES
NEW YORK The dollar fell sharply Thursday as investors said a United Nations report on Iraq due Friday might bring the U.S. closer to launching an attack.
In late trading, the euro rose to $1.0844 from $1.0717 late Wednesday, while the dollar fell to ¥120.540 from ¥121.285. The dollar fell to 1.3540 Swiss francs from 1.3702 francs, and the pound rose to $1.6212 from $1.6163.
Traders have driven the dollar down about 9 percent against the euro since UN weapons inspections began in Iraq in November. Speculation that the chief UN inspector, Hans Blix, will report that Iraq has not accounted for all its weapons overshadowed upbeat retail sales and weekly jobless data.
"The economic picture has been swamped" by speculation about Blix's report, said Karl Halligan, chief currency trader at the New York branch of France's CIC Bank.
The dollar extended losses when part of Gatwick Airport near London was evacuated after a security alert.
"The only thing that matters to the dollar is Iraq and terrorism" said Ihab Salib, a fund manager at Federated Investors Inc. He said he was holding fewer dollars than recommended by the benchmark indexes he follows.
"We don't like the dollar," said Andrew Snowball, senior economist at Julius Baer International Ltd. in London. "What concerns us is who is going to be in this war and how quick will it be?" (Bloomberg)
http://www.iht.com/articles/86652.htm