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To: 4figureau who wrote (2955)	1/26/2003 11:18:54 PM
From: Rocket Red	Read Replies (1) \| Respond to of 5423

Dollar May Fall as Iraq War Prospects Curb Investment in U.S. By John Brinsley Tokyo, Jan. 27 (Bloomberg) -- The dollar may drop for a record 10th day against the euro after Secretary of State Colin Powell said the U.S. may act alone to disarm Iraq, deterring global investment in U.S. assets. ``As long as the threat of war looms, it is unlikely the U.S. is going to be attractive to investors,'' said Hidehiko Inamura, vice president of foreign exchange in Tokyo at Citibank NA, the largest trader in the $1.2 trillion-a-day currency market. ``That's hurting the dollar.'' The dollar traded at $1.0842 against the euro at 12:42 p.m. in Tokyo, from $1.0826 late Friday in New York, where it fell to a 39-month low of $1.0855. The dollar has dropped 2.6 percent during the 10-day slide. It also traded at 117.85 yen, from 117.82 yen. The currency has also been hurt by a decline in stock prices, with the Standard & Poor's 500 Index having its biggest weekly loss since the week ended Sept. 20. The U.S. needs to attract about $1.4 billion in international investment a day to counter a current account deficit, the broadest measure of international trade. ``For the dollar to decline, money doesn't even have to leave the U.S., as long as the market's not putting money in,'' said Johnathan Bayley, currency strategist at Westpac Banking Corp. in Wellington. ``The dollar has a long way to depreciate'' and could fall ``at least'' as low as $1.12 to the euro by the end of the year.