The dollar lost ground this morning as investors looked beyond the war in Iraq to the uncertain outlook for the global economy.
Investors kept a nervous eye on the fighting in Iraq, as thousands of US troops swept through the suburbs of Baghdad, but worries about the post-war economy outweighed anticipation of a quick end to the war.
By 9 a.m., the euro was up against the dollar at USD1.0763, while against sterling the single currency was up at Stg0.6932.
The one exception to the dollar's slide was the yen, which fell against the dollar on broad based selling by Japanese institutional investors.
Oil prices, which have been falling in anticipation of increased supply once fighting ends, rose on the possibility of an output cut by the OPEC producers group.
IPE Brent crude for May delivery finished up at $24.76 per barrel.
Agencies