INFLATION

Crude oil futures soared for a fifth day above $126 a barrel on Friday as the dollar fell against the euro and other major currencies increasing demand for commodities as a hedge against inflation.

Dollar closed slightly lower after a range bound movement against the euro yesterday due to the recovery in European currency after the decision from ECB.

Gold futures ended with strong gains on Thursday as record energy costs and weakness in the U.S. dollar boosted the demand for a hedge against inflation.

Crude futures climbed past $124 a barrel in electronic trading late afternoon, recovering from earlier weakness as traders continued to have concerns over global supplies, while OPEC commented the market is well supplied.

Gold fell for the first time in four sessions on Wednesday as the dollar strengthened against the euro and other major currencies.

Dollar drifted lower against the euro yesterday and closed at 1.5529 (1.5491)

Dollar eased against the euro yesterday despite an unexpectedly strong data from the US Service sector.

Dollar strengthened against the euro on Friday after government report showed the U.S. economy shed just 20 000 jobs in April fewer than economists had expected.

Copper futures recovered on Friday from a sell-off the previous day and but gained support by better than expected jobless data and factory orders in the United States. Prices also rose amid worries on short supplies from top exporter Chile.

Dollar strengthened against the euro yesterday as traders took profits on the European currency amid optimism that the Federal Reserve's

The dollar rose on Friday against an index of its largest rival currencies after U.S. economic data on Thursday raised expectations that the Federal Reserve would take a pause from its string of interest rate cuts.

Copper fell over 5 percent today as the dollar rose against the euro, diminishing demand for commodities used to compensate for inflation.

The dollar fell against major currencies on Wednesday after the Federal Reserve made an expected quarter point cut in its benchmark interest rate to 2 percent but left open the possibility to further rate cuts, raising concerns about inflation.

The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 2 percent.

China should continue to prevent inflation and overheating of economic development in the second quarter, especially to control rising prices and curb inflation, the State Development and Reform Commission (SDRC) said Tuesday.

Treasuries rose on Monday in light trading as bond investors expected a Federal Reserve cut in the benchmark interest rate later in the week.

Gold futures rose on Monday after crude-oil contract hit a new record, raising the appeal of precious metals as a hedge against inflation.

By Gary DorschIn the futures markets, crude oil is up 80% from a year ago, unleaded gasoline up 40% natural gas up 39%, Soybeans are up 83%, corn up 65%, wheat up 95%, sugar up 30%, Gold up 36%, and rough rice is 125% higher from a year ago

Sterling recovered against the broadly weak dollar yesterday after a Bank of England policymaker welcomed the bank's plan to free up market liquidity as a way to keep the BOE focused on inflation risks.

The dollar fell to a new low against the euro on Tuesday, crossing the $1.60 per euro mark, after European Central Bank officials signaled that growing inflation may force the bank to boost interest rates.

Copper prices rose on Tuesday as a labor strike in Chile's largest producer Codelco closed three mining divisions raising concerns that supplies would not be able to meet worldwide demand.