Copper ticks up as Fed rate hike bets cool

Business Recorder reported that copper edged higher on Monday, as improving demand prospects and lower interest rate expectations outweighed a firmer dollar. Copper for three-month delivery on the London Metal Exchange climbed 0.19% to $14,286 a metric ton by 0300 GMT.

Traders have sharply reduced their bets on a Fed rate increase at this month's meeting, with the implied chance dropping to 18% from 64% a week earlier, according to CME FedWatch data. The shift followed softer-than-forecast US jobs figures last week, which eased fears that the central bank would tighten policy to fight inflation. Higher borrowing costs typically slow economic activity and reduce demand for industrial metals such as copper.

Separately, the dollar index, which tracks six major currencies, rose 0.53% as the greenback hit a near 17-month high, helped by a weak euro. A stronger dollar makes metals pricier for buyers using other currencies, while lower oil prices lent copper some support after rising Middle East crude exports and a Group of Seven oil stock release lifted supply. Aluminium slipped 0.19% and was set for a sixth straight daily loss after touching $3,091.5 a ton, the weakest level in over three months.