US interest rate outlook, stronger dollar drags down
Copper
29/12/2014 09:47
Copper futures tumbled in the domestic market on Friday as investors and speculators exited positions in the industrial metal tracking a weak trend in the overseas market on speculation that the US Federal Reserve is nearing raising interest rates for the first time since 2006 in the US, the world’s second biggest copper consumer, clouding the demand outlook for the base metal.
Stronger dollar curbed the demand for the base metal as an alternative asset. Stronger greenback makes copper more expensive for those holding other currencies, thus dimming demand.
Copper futures may continue the downward journey today after China’s industrial profits fell the most in more than two years last month, signaling a gloomy demand outlook.
At the MCX, Copper futures for February 2015 contract closed at Rs 400.45 per 1 kg, down by 0.93 per cent after opening at Rs 404.6, against the previous closing price of Rs 404.2. It touched the intra-day low of Rs 399.25 till the closing.
29/12/2014 09:47
Copper futures tumbled in the domestic market on Friday as investors and speculators exited positions in the industrial metal tracking a weak trend in the overseas market on speculation that the US Federal Reserve is nearing raising interest rates for the first time since 2006 in the US, the world’s second biggest copper consumer, clouding the demand outlook for the base metal.
Stronger dollar curbed the demand for the base metal as an alternative asset. Stronger greenback makes copper more expensive for those holding other currencies, thus dimming demand.
Copper futures may continue the downward journey today after China’s industrial profits fell the most in more than two years last month, signaling a gloomy demand outlook.
At the MCX, Copper futures for February 2015 contract closed at Rs 400.45 per 1 kg, down by 0.93 per cent after opening at Rs 404.6, against the previous closing price of Rs 404.2. It touched the intra-day low of Rs 399.25 till the closing.
