1502 GMT - Euro/dollar probes upper end of session's ranges trades above $1.0640 as European Central Bank chief economist Otmar Issing tells a European Parliament committee hearing that war uncertainty and currency market volatility may exist for some time. Adds that market will ultimately decide what international role of euro is.
- Issing also casts doubt on recent speculation that stability pact could be loosened -- telling the parliament that war is not a justification for not living up to fiscal rules. - Dollar stumbles across the board as a weekend filled with reports of coalition setbacks in the war against Iraq pointedly reminds market participants that the conflict will be neither swift nor bloodless. With no data releases on the docket, market seen trading all but exclusively on Iraq headlines.
- Dollar/yen buys 120.57 yen, below Friday's 3-month high at 121.87 and down 0.65 percent from its previous U.S. close. Traders cautious as Bank of Japan announces unexpectedly a meeting of the policy committee for Tuesday -- heightening speculation the central bank could announce new monetary easing measures.
- Dollar/Swiss franc also pulls back from last week's two month highs, oscillates 1.3850 francs , down more than a percent on the day. Sterling advances against the dollar, trading near $1.5755, up 0.85 percent on the day.//