BENGALURU: Copper prices rose on Wednesday to their highest in nearly three weeks, supported by a weaker US dollar and hopes of a pick-up in demand from top metals consumer China following Beijing’s efforts to boost its economy and property sector.

Three-month copper on the London Metal Exchange was up 0.5% at $8,543.50 per metric ton by 0714 GMT, after hitting its highest since Feb. 2 earlier in the session.

The most-traded March copper contract on the Shanghai Futures Exchange (SHFE) ended daytime trading 0.9% higher at 69,000 yuan ($9,601.87) a ton.

“The weaker USD since yesterday is supporting the markets and some investors are also using base metals as a proxy to express their bullish view on China sentiment,” a Singapore-based metals trader said. The dollar weakened broadly on Wednesday as it tracked a global decline in bond yields.

A weaker US currency makes dollar-priced metals less expensive for holders of other currencies. China announced its biggest reduction in the benchmark mortgage rate on Tuesday as authorities sought to prop up the struggling property market and the broader economy.

With China’s return from the Lunar New Year holiday break, traders and analysts are looking for demand clues over the coming weeks and prospects of a pick-up in construction activity as winter draws to an end.