Copper Futures Dip on Stronger Dollar

Investing.com reported that copper futures fell to the lowest in a week on Monday on the back of a stronger US dollar. Copper for March delivery on the New York Comex hit $2.799 per pound after briefly touching $2.797.

As quoted in the publication:

The US dollar index, which measures the greenback against a basket of six major currencies, advanced 0.3% to hit a nine-year high of 91.75, boosted by the diverging policy outlook between the Federal Reserve and central banks in Europe and Japan.

A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.

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