Copper futures in reverse gear on Fed rate hike hopes

Copper futures in reverse gear on Fed rate hike hopes

07/03/2017 15:44

Copper futures were trading lower during afternoon trade in the domestic market on Tuesday as investors and speculators exited their positions in the industrial metal as investors weighed the near-certain prospect of an interest rate hike in the US in March and ahead of the key economic data due later in the week.

The US monthly jobs report due to be released on Friday. Investors are expecting that the US Federal Reserve will raise interest rates at its upcoming policy meeting on March 14-15.

The higher US interest rates would diminish the demand for non-interest bearing assets while a higher dollar makes the commodities more expensive for buyers using other currencies.

At the MCX, copper futures for April 2017 contract is trading at Rs 389.50 per kg, down by 0.60 per cent, after opening at Rs 392.20, against a previous close of Rs 391.85. It touched the intra-day low of Rs 389.10 (at 15:41 hours).

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