Dollar slips as economic worries return

The dollar lost ground against the yen this morning and major Asian stock indices eased as mounting concerns about the global…

The dollar lost ground against the yen this morning and major Asian stock indices eased as mounting concerns about the global economy eclipsed initial euphoria over the fall of Iraqi President Saddam Hussein, analysts said.

Investors were now switching their focus back to economic fundamentals now that the US and its allies have ended the 24-year reign of the Iraqi leader, they said.

At 5 a.m. (Irish time), the dollar traded at yen 119.91-94, down from 120.00-10 yen in New York yesterday afternoon. The euro fetched $1.0791 up from $1.0765-0775.

"Everyone was looking for this post-Iraq bounce but it is sort of a non-traditional victory," said Mr Marshall Gittler, senior currency strategist at Deutsche Bank.

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"Saddam's regime is more melting than falling so it may be that people aren't sure whether the war is over," he said.

Hong Kong's key Hang Seng index lost 0.13 per cent to close the morning at 8,625.89 while the Straits Times in Singapore was up 0.59 per cent at 1,300.54.

At 5.22 a.m. (Irish time) New York light sweet crude for May delivery traded at $28.60-a-barrel, down 25 cents from its close of $28.85 in New York last night.

OPEC is to hold an extraordinary meeting in Vienna on April 24th to consider a possible production cut, according to a source at the cartel.

AFP