Copper hovers near 8-year high on weaker dollar
- Trading was subdued as the Shanghai Futures Exchange is shut during Feb. 11-17 for the Lunar New Year holidays in China, the world's top metals consumer.
HANOI: London copper prices eased on Thursday, hovering around an eight-year high hit in the previous session as a weaker dollar lent support, but trading was thin due to the Lunar New Year holiday in China.
The three-month copper contract on the London Metal Exchange dipped 0.1% to $8,289 a tonne by 0747 GMT, rebounding from a 0.7% fall earlier in the session and hovering near its highest since February 2013 of $8,327.50 a tonne.
"A softer greenback underpinned prices, with the US Dollar Index easing for a fifth straight day on optimism that the (US) Congress may pass a relief-package to aid growth," said commodities broker Anna Stablum of Marex Spectron in a note.
A weaker dollar, also pressured by soft inflation and the prospects of prolonged low interest rates in the United States, makes greenback-priced metals on the LME cheaper and more appealing to holders of other currencies.
Trading was subdued as the Shanghai Futures Exchange is shut during Feb. 11-17 for the Lunar New Year holidays in China, the world's top metals consumer.
Aluminium declined 0.4% to $2,070.50 a tonne, lead shed 0.7% at $2,080 a tonne, nickel decreased 0.3% to $18,605 a tonne, while zinc rose 0.3% at $2,733 a tonne.
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