Copper rises as dollar falls to record low

Print this page Posted on : 10-30-2007 by recycleinme.com

Copper rose to the highest in more than a week in London as the dollar fell to a record, making metals denominated in the currency cheaper for investors outside of the US Lead and zinc also gained.

Copper has gained 25 per cent this year while an index of the US dollar against a basket of six major currencies, including the euro and yen declined 8.1 per cent.

“The dollar weakness is helping all the metals here as there’re stronger purchases via domestic currencies,” Mr. Nick Moore, an analyst at ABN Amro Holding NV, said from London.

Copper for delivery in three months on the LME rose $50, or 0.6 per cent, to $7,920 a tonne as of 10:09 a.m. in London. It earlier traded at $7,969 a tonne, the highest intraday price since Oct. 18.

Nickel gained $200, or 0.6 per cent to $32,000.

Xstrata Plc agreed to buy Jubilee Mines NL for A$3.1 billion ($2.9 billion) to add nickel output in Australia, the world’s third-largest producer of the metal.

Xstrata Chief Executive Officer Mr. Mick Davis last year spent $22 billion on mining assets as nickel more than doubled and zinc gained for a sixth straight year on demand from China.

Zinc rose $30 to $2,930 and tin advanced $125 to $16,600. Aluminium fell $2 to $2,536 a ton and lead gained $45 to $3,700.

Source : Business Line