June 30 (Bloomberg) -- Investors should avoid the dollar and buy commodities, which is the ``best investment'' for this year, said Jim Rogers, chairman of Rogers Holdings.
Avoid the dollar ``at all costs,'' Rogers said at the opening of an investment club in Shanghai today. ``Agricultural prices have much higher to go over the next decade. We have a shortage of everything including seeds.''
The U.S. currency has slipped 7.6 percent against the euro and 5.1 percent versus the yen this year as the Federal Reserve cut interest rates to stave off a U.S. economic recession. Oil prices in New York have doubled in the past 12 months, while gold futures jumped 41 percent.
Rogers, who put his New York house on the market in 2006 and now lives in Singapore, said last October he planned to shift all his assets out of the dollar. He predicted last month the currency's decline would pause in the second quarter because it was overdone.
Rogers said May 8 he expected a ``nice rally in the American dollar because so many have been bearish on the American dollar, including me.'' On May 14 he recommended investors use the dollar's rally as an opportunity to buy the Japanese yen and Swiss franc.
The dollar traded at 105.99 yen at 6:37 a.m. in London from 106.13 late in New York on June 27, when it fell to a three-week low of 105.87. Against the euro, it was at $1.5792 from $1.5794, the lowest since June 9.
``The best investments in 2008 are commodities and natural resources,'' said Rogers today. In April 2006 he correctly predicted oil would reach $100 a barrel and gold $1,000 an ounce. Oil reached a record $142.99 a barrel on June 27.
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