FX Week

War opposition deepens dollar sell-off

China, Russia, Germany and France voiced their opposition to US action without United Nations approval last week, but Donald Rumsfeld, the US defence secretary, claimed European dissent was that of "old Europe". Markets reacted by selling dollars, fearful of a lasting rift between the US and G7 counterparts in Europe, dealers said.

The euro hit a three-year high of $1.082 against the greenback, while the British pound touched its highest level against the dollar since January 2000 at $1.633.