- July 8, 2021
- Posted by: Stratford Team
- Category: Economy
July 8 (Reuters) – London copper prices eased on Thursday as minutes of the U.S. Federal Reserve’s latest meeting reaffirmed sooner than expected tapering of its bond buying, supporting the dollar and threatening liquidity in financial assets.
The dollar hovered near a three-month high against other leading currencies after minutes of the Fed’s June policy meeting confirmed that the world’s biggest central bank is moving towards tapering asset purchases as soon as this year.
A stronger dollar makes dollar-priced metals more expensive for holders of other currencies.
Three-month copper on the London Metal Exchange (LME) declined 0.9% to $9,371.50 a tonne by 0705 GMT while the most-traded August copper contract on the Shanghai Futures Exchange edged up 0.1% to 68,740 yuan ($10,608.68).
Though rising copper treatment charges and the release of Chinese state reserves have pressured prices, China’s control of the COVID-19 pandemic and…