Copper falls on firmer dollar as virus worries weigh

News

London copper prices fell on Wednesday, dented by a stronger dollar which rose on worries about climbing COVID-19 cases worldwide.

Three-month copper on the London Metal Exchange fell 0.5% to $9,2792 a tonne by 0732 GMT. The most-traded August copper contract on the Shanghai Futures Exchange tracked overnight gains in London to close up 0.2% at 68,020 yuan ($10,504.86) a tonne.

The dollar stood on the verge of fresh peaks for this year, as jitters about surging infections buttressed gains built on higher interest rate expectations, with investors waiting on the European Central Bank for their next cue.

A firm dollar makes metals priced in the U.S. currency more expensive to holders of other currencies.

As copper prices fell because of dollar pressures, downstream buying interest in China emerged, preventing a steeper decline, said Huatai Futures in a note.

Yangshan copper premium rose to $40 a tonne, its highest since May 7, indicating strengthening demand for imported metal into China.

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