LME copper steadies on weak dollar, eyes on Greece

SHANGHAI: London copper edged up on Friday on a weaker dollar, after news that a crucial loan may be released to Athens next month lent support to the euro.

Three-month copper on the London Metal Exchange lifted 0.09 percent to $9,057 at a tonne by 0738 GMT, after losing almost 1 percent in the last session.

The most-active August copper contract on the Shanghai Futures Exchange also rose 0.3 percent to 68,330 yuan per tonne.

"Copper prices are largely directed by movements in the dollar today. Also, we hear of large hedge funds buying up copper lately," said a Singapore-based trader.

The dollar retreated against a basket of currencies while the euro was steadier in Asia on Friday.

The single currency had a rollercoaster ride in the past 24 hours that saw it slump to a record low on the Swiss franc, before staging a rebound as the market reacted to headlines about Greece's debt crisis.

In a statement intended to soothe markets, the European Union's top economic official, Olli Rehn, said on Thursday he expected the EU and the International Monetary Fund to release a crucial 12 billion euro loan tranche in early July to keep Athens afloat.

Germany's banking association on Thursday warned that a disorderly restructuring of Greek debt could lead to contagion in the markets and reiterated that banks were willing to make a private sector contribution.

US stocks and oil also pulled back from the brink of another sell-off on Thursday, as investors awaited signs the international community could prevent Greece from defaulting on its debt.

Copyright Reuters, 2011