London, March 28 (Bloomberg) -- The British pound fell for a fifth day against the euro on concern the U.S. and U.K.-led war in Iraq won't end as quickly as earlier expected. U.S. and U.K. forces are battling Iraqi resistance as they enter the ninth day of their effort to oust Saddam Hussein. The war tends to weigh on the pound against the euro because the U.K.'s close military alliance with the U.S. makes it less of a so- called haven investment. ``The U.K. is heavily involved in the war while the biggest countries in the euro area aren't,'' and that's weighing on the pound, said Osman Wahid, a currency strategist at J.P. Morgan Chase & Co. ``It now looks as though the war isn't as uncomplicated as originally thought.'' The pound may drop to 69 pence per euro in coming days, he said.
The pound was trading at 6862 pence per euro at 9:41 a.m. in London, from 68.30 late yesterday. The British currency has shed 4.6 percent versus the euro this year. Against the dollar, the pound was at $1.5631 from $1.5642. U.S. Defense Secretary Donald Rumsfeld said yesterday the military campaign against Iraq will grow increasingly dangerous for soldiers, and he asked Congress for more money to fight the war effectively. Coalition aircraft attacked Iraqi Republican Guard divisions outside Baghdad and bombed targets in the capital as U.S. government officials said winning the war will take some time. //www.quote.bloomberg.com