LONDON – Copper prices lost ground on Friday as the dollar was underpinned by rising bets by investors the U.S Federal Reserve would tighten monetary policy faster than expected.
A surprisingly strong reading of U.S. inflation this week boosted the dollar to its highest since July 2020, making commodities priced in the greenback more expensive to holders of other currencies.
An interest rate hike could trim liquidity in financial markets and slow recovery in the world’s biggest economy.
“The dollar has been on a stronger rally since U.S. CPI data release,” said ING analyst Wenyu Yao.
Concerns over the financial health of China Evergrande , which made a last minute bond payment to avert default, and possible contagion to the rest of the property sector lingered and weighed on copper, Yao said.
Benchmark copper on the London Metal Exchange (LME) rose 0.2% to $9,613 per tonne by 1230 GMT, but still set to end the week nearly 1% higher.
Its consolidated revenue from operations in July-September 2021 increased to Rs 47,665 crore as compared with Rs 31,237 crore in the year-ago period, the filing said.
Read More: Copper prices slip after U.S. inflation boosts dollar – ET Auto
