Analysts mull Iraq FX fallout

- By FX Markets Staff
- @FXMarkets_
- 10 Feb 2003

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Most in the market agree that a "war premium" has now been priced into FX, with trading dominated by Iraq-related issues. "Judging by the speed of its decline and broad market developments there is now a war premium embedded in the dollar," said Yianos Kontopoulos, chief global FX strategist at Merrill Lynch in New York. He added that around two and a half cents of the euro’s recent rise against the dollar is due to risk premium.

But the dollar could remain the loser whatever the coming months

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