December 24, 2002	Tuesday	Shawwal 19, 1423

LONDON, Dec 23: The dollar fell against other leading currencies on Monday in thin trading, undermined by concerns about the outlook for the US economy and the prospect of a war in Iraq.

The single European currency rallied to 1.0309 dollars from 1.0271 late on Friday in New York.

The dollar dropped to 119.88 yen from 120.36 on Friday.

Markets were shut in Japan Monday for a public holiday, while dealers in Europe were winding down ahead of the Christmas break, with markets here shut on Wednesday and Thursday.

It is just a broad-base dollar move here that we are seeing, said Commerzbank strategist Kamal Sharma.

We are seeing continued comments coming from the US administration about a possible military action in the Middle East at the end of January.

So I think that’s really a reason why we are seeing the dollar coming under pressure and trading volumes are very low ahead of Christmas Eve and Christmas Day, he added.

Analysts say that a big US current deficit leaves the US unit exposed to a sharp fall if foreign investors begin repatriating money as often happens in times of uncertainty.

Moreover, any US-led conflict is also likely to hurt US consumer confidence and lead

to a bigger public deficit, they add.

Sharma said that the next significant level for the euro based on technical analysis was 1.0345 dollars, but said there was little reason to believe the currency would break through the threshold on Monday.

Dealers were also digesting an upward revision to third-quarter British economic growth figures, to a quarterly rate of 0.9 per cent in the three months to September from a previous figure of 0.8 per cent.

Gross domestic product also rose by 2.1 per cent in the September quarter from the equivalent period of last year, against a previous figure of 1.8 per cent, a third and final official estimate showed.

The euro was changing hands at 1.0309 dollars from 1.0271 late on Friday in New York, 123.58 yen (123.65), 0.6430 pounds (0.6409) and 1.4595 Swiss francs (1.4628).

The dollar was being quoted at 119.88 yen (120.36) and 1.4154 Swiss francs (1.4239).

The pound was at 1.6036 dollars (1.6018), 192.21 yen (192.84) and 2.2694 Swiss francs (2.2817).

On the London Bullion Market, the price of an ounce of gold rose to $343.00 from 341.60 late on Friday. —AFP