The Hindu Business Line : Base metals future up on global cues as dollar weakens

NEW DELHI: Supported by weakening US greenback and a likely rise in physical demand, amid firming crude oil, base metals futures on Monday rose on the country's leading Multi Commodity Exchange.

Firming trends in most of base metals on the London Metal Exchange (LME) also influenced prices. Copper, for both November and February 2009 contracts, were up by 1.24 per cent each at Rs 322.15 and Rs 322.40 per kg respectively at the MCX counter.

The contracts recorded business volume of 10,633 and 489 lots, respectively. According to G Harish of Karvy Comtrade, weakening US dollar against the euro and other major currencies mainly lifted base metal higher at futures market here.

Weak dollar generally spurs demand for metals and other commodities as a hedge against inflation. “Short-covering after recent weakness and pick-up in physical demand for metals from consuming industries too gave push to rising prices”, Harish said.

Meanwhile, copper for three-month delivery months gained 0.6 per cent to 7,100 dollar a tonne on the LME. - PTI

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