Market looks to post-war scenarios

The dollar fell in the early part of last week, touching $1.092 against the euro, on fears the conflict could escalate after US defence secretary Donald Rumsfeld issued warnings to Syria and Iran. But towards the end of the week the dollar had rallied to around $1.071 as coalition forces descended on Iraq’s capital Baghdad.

Analysts said conflicting media reporting of the war is making it difficult for the market to get a clear picture of how the invasion is progressing. "It does appear the