31 March 2003, 13:23  Euro hits two week high against dollar

The dollar remains under pressure this morning amid growing concern over the potential length of the war in Iraq. Defence Secretary Donald Rumsfeld said that US troops still have to face the fiercest fighting when they go head-to-head with Saddam Hussein's Republican Guard. At 0845, the euro was up 0.65pc at USD1.0847 against the dollar, a two week high. Brent crude rose 42c to USD26.77 per barrel, while gold climbed USD3.85 to USD335.25 per ounce, almost its highest level since the military conflict began. There has also been concern over the tactics of Iraqi troops following the killing of four US soldiers on Saturday by a suicide bomber. Iraqi deputy prime minister Tariq Aziz told US television that people threatened by invaders have "the right to fight by all means", which has been interpreted to mean that further suicide attacks can be expected. Economic news is likely to take a backseat to the war again this week, at least until Friday, when US unemployment figures will be released. Analysts at AIB said they expect payrolls to fall by a further 50,000 in March following the 308,000 slump last month, underpinning the weakness in the US labour market. //www.fxcentre.com

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