Dollar Hit as Emerging Economies Fight Inflation

A weak US dollar continued to fuel surging commodity prices today, keeping oil near $108 a barrel and moving a gallon of gas to $3.225, with analysts predicting near $4 prices by spring, the Wall Street Journal reports. Stress on the greenback is coming from not only major but minor currencies, as developing nations fight inflation by relaxing currency controls.

Surging prices for commodities are prompting more central banks, including emerging nations, to allow their currencies to rise against the dollar, which has lost 4.9% to the euro and 8.7% to the yen this year. Experts say most Asian currencies are poised for strong growth; China’s yuan, for example, has grown 3% against the dollar this year. (More US dollar stories.)