European currencies win out as Japan and US woes bite

The dollar fell to a two-month low against the British pound, and also fell against the Swiss franc, as fears over the US stance on Iraq continued to benefit the Swissie’s safe-haven reputation.

Tumbling equities both in Japan and the US also had a hand in the moves, which helped the euro rise to a one-month high close to parity with the US dollar.

In Japan, the Nikkei 225 stock index closed at its lowest level since 1983, as investors sold banking equities heavily amid fears that the Japanes