The US dollar neared new lows against the euro. The US currencies woes were exacerbated by a private-sector report showing that US firms unexpectedly shed workers last month.According to the Bloomberg news agency: “The dollar weakened to $1.5232 per euro at 9:01 a.m. in New York, from $1.5217 yesterday.”

Meanwhile, sterling fell to a record low against the euro as a UK industry report reveled fall in British consumer confidence.

“Dollar-denominated commodities continue daily to hit new highs. Says Philip Verleger, an independent economist and oil expert in the International Herald Tribune:

“When investors lose confidence in the central bank, they tend to look for hard assets. The Fed’s capitulation on inflation is driving investors to commodities. The problem is there are no sellers. This means futures prices will keep rising.”

“More ominously,” says Rob Mackrill, “soft commodity prices are soaring … The reasons for the high price are common to other arable crops such as wheat. Bad weather cutting crop yields…urbanisation cutting the acreage grown…and strong demand from China, India and other Asian countries. Stocks are at a 25-year low and exporters such as Egypt, Vietnam and India are cutting exports to keep domestic markets amply supplied.”