Shanghai copper slipped to its lowest in more than three weeks on Monday, tracking last week’s losses in London after the Federal Reserve sent a strong signal that it would raise interest rates this year, boosting the dollar.

Fundamentals

The most-traded July copper contract on the Shanghai Futures Exchange slipped 1.2 per cent to 44,630 yuan ($7,201) a tonne.

ShFE nickel was down 2.3 per cent at 99,270 yuan a tonne.

The London Metal Exchange was closed for the spring bank holiday.

Fed rate hike

Federal Reserve Chair Janet Yellen was clearer than ever on Friday that the central bank was poised to raise interest rates this year, as the US economy was set to bounce back from an early-year slump and as headwinds at home and abroad waned.

A stronger dollar erodes the value of commodities for the holders of other currencies.

Greece debt repayment

Greece cannot make debt repayments to the International Monetary Fund (IMF) next month unless it achieves a deal with creditors, its interior minister had said on Sunday, the most explicit remarks yet from Athens about the likelihood of default if talks fail.

Finance ministers from the world’s largest developed economies meet in Germany this week against a backdrop of faltering global growth, scant inflationary pressures and a bond market in turmoil.

Hedge funds and money managers cut a net long stance in copper futures and options during the week ended May 19, US Commodity Futures Trading Commission (CFTC) data had showed on Friday.

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