Prolonged War in Iraq May Lead to Dollar Fall

The military operation in Iraq that started on Thursday may result in the US dollar fall on the world currency market, and thus strengthen the rouble.

This forecast is real in case the military action is prolonged, experts of the Russian NIKoil company believe. And this variant "cannot be overlooked, as even US President George Bush indicated in his speech that he did not rule out such a possibility," they pointed out.

As to the influence the current events may have on the oil prices, and, in particular, on the Russian oil market, the prices have been falling over the past 2-3 days because the USA expected a "blitzkrieg" in Iraq, the company's analysts believe.

Yet signs have already appeared that the action might not be that short-term, ant this can lead to a rising trend in the Russian oil companies' stocks, NIKoil pointed out.

At the same time, any assessment of the situation's influence on the financial and oil markets can be only approximate, and more definite prognosis will be possible only after it becomes clear whether it is a blitzkrieg or a prolonged war, the experts said.