Copper down on currency moves

Print this page Posted on : 10-23-2009 by recycleinme.com

Oct. 22 Copper fell from a 13-month high in New York as the dollar strengthened, eroding metals appeal as an alternative investment. The dollar gained on speculation that China may reduce economic-stimulus spending after reports today showed the countrys gross domestic product rose at the fastest pace in a year in the third quarter and inflationary pressures sped up. December-delivery copper shed 2.85 cents to $3.0075 a pound on the NYME's Comex unit at 8:35 a.m. local time. The contract on Wednesday rose as high as $3.0575, the highest intraday price since Sept. 25, 2008. Copper for three-month delivery was unchanged at $6,590 a tonne on the LME. The Dollar Index, a six-currency measure of the greenbacks value, rose as much as 0.7 per cent, paring this years retreat to 7.3 per cent. Consumption in Asia will drive demand for minerals, said BHP Billiton Ltd. "We stand at the threshold of an era of unprecedented growth due to demand generated by China and, in the future, India," the Chairman, Mr Don Argus, said. Among other LME metals for 3-month delivery, zinc rose 0.2 per cent to $2,239.75 a tonne. It advanced as high as $2,265, the highest since May 21 last year. Nickel fell 1.1 per cent to $19,525 a tonne. Aluminium rose 0.5 per cent to $1,975 a tonne after climbing as high as $1,999.75. Tin gained one per cent to $14,600 a tonne, while lead shed 0.8 per cent to $2,430.25 a tonne.

Source : Business Line