The dollar continued to lose ground against major currencies in early deals today, with risk factors seen remaining high as the market awaits US Secretary of State Colin Powell's speech to the UN. By 0900, the euro had risen to a four-year high of USD1.0916 against the greenback. Powell is expected to reveal what Washington says is evidence that Iraq is hiding weapons of mass destruction and is obstructing UN arms inspectors. With markets conscious of the likelihood of war, European currencies and gold continue to benefit. As well as geopolitical concerns, yesterday's sell-off on Wall Street is also dragging the dollar lower.
According to Geraldine Concagh, senior economist with AIB Global Treasury, "The general consensus appears to be that unless Powell provides some evidence which will get the international community on the side of the US the dollar and US equities will slide." //www.fxcentre.com