March 30, 2003	Sunday	Muharram 26, 1424

NEW YORK, March 29: The dollar slipped against other major currencies on Friday as markets braced for the possibility of more setbacks in the progress of the war in Iraq over the weekend.

The euro rose to $1.0783 from 1.0693 late on Thursday in New York.

The dollar was trading at 119.75 yen from 119.94.

Throughout most of this week the dollar and sterling have been pressured by concerns about the duration of the war, which many initially thought would wrap up relatively quickly and painlessly, but lately has run into setbacks and delays.

As each day ticks by without a sign of victory for the coalition, people reconsider the sharp dollar rally we had in mid-March before the war began, IDEAGlobal.com foreign exchange analyst Sean Callow said.

The analyst projected that, unless the US and Britain make sudden progress, the euro could soon return to the 1.10-1.11 dollar range where it perched throughout much of February and early March.

Barclays Capital analyst Jane Foley said: The market has taken a more cautious, more pragmatic approach and hedged positions in case of more setbacks over the weekend.

Bear Stearns analyst David Broan said: The markets are starting to look more overstretched, with the initial bravado for a short war going further into a correctional back off.

The dollar was being quoted in late trades at 1.3685 Swiss francs from 1.3813 Thursday.

The pound was at $1.5736 after 1.5649 on Thursday. —AFP