Copper falls as dollar rally weighs on industrial metals

Copper prices eased slightly on Wednesday as a firmer US dollar and higher oil prices weighed on the metal. Business Recorder reported that benchmark three-month copper on the London Metal Exchange slipped 0.25 per cent to $14,379 a metric ton by 0300 GMT. The dollar index rose 0.14 per cent to 102.05, and a stronger greenback makes industrial metals costlier for buyers using other currencies.

Oil prices climbed as traders weighed a storm approaching US oil-producing regions alongside Houthi attacks on Saudi Arabia. Rising crude has stoked inflation worries and fears that policymakers could raise interest rates, and higher rates tend to dampen economic activity and demand for commodities such as copper. Asian shares also softened, led by AI-related stocks, which pared an earlier rally that had supported copper.

Aluminium was the strongest industrial metal on the LME, rising 0.25 per cent on supply risks linked to Middle East tensions, though it remains more than 17 per cent below its four-year high reached in June. According to the report, zinc, lead, nickel and tin moved only marginally. Investors will also watch the Federal Reserve's minutes from its September policy meeting, while the Shanghai Futures Exchange stays closed until Thursday.