Home » Dollar Weakens as Copper Prices Surge: Weekly Market Update

Dollar Weakens as Copper Prices Surge: Weekly Market Update

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Dollar Weakens as Copper Prices Surge: Weekly Market Update

The dollar faced another decline on Friday as copper prices surged on the London Metal Exchange. Despite an air attack on Iran, tensions in the Middle East have not escalated, providing some stability in the markets.

The US currency closed at $956, marking a $9.5 drop compared to Thursday’s closing rate. This latest decrease contributed to a weekly drop of $16.5 and a monthly drop of $22.75.

Ricardo Bustamante of Capitaria pointed out that the price of copper has been a major factor affecting the dollar, with copper reaching its highest level since mid-2022. The metal is currently trading at $4.5 a pound in future prices.

Meanwhile, uncertainty persists regarding interest rates in the US. Fernando Urquieta of XTB Latam highlighted the ongoing uncertainty surrounding a potential rate cut in the US, which has led to the dollar index experiencing sideways movement. On the other hand, favorable data for copper has propelled the metal to trade at two-year highs and continue its upward trajectory.

Copper itself reached its highest level since April 29 of last year, experiencing a 16% increase in the last two months. On the London Metal Exchange, the three-month red metal rose by 1% to reach US$9,834 a tonne, after peaking at US$9,843, according to Reuters data.

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