Mumbai, 14 Feb (Commoditiescontrol): London Metal Exchange (LME) base metal futures quoted softer on Wednesday, weighed down by a stronger dollar after hotter-than-expected U.S. inflation data dampened expectations for early interest rate cuts from the Federal Reserve.
Three-month copper on the London Metal Exchange was down 0.6% at $8,210 a metric ton.
The dollar traded near three-month highs against major peers as traders pushed back bets for a first Fed rate cut following surprisingly hot U.S. inflation figures overnight. A stronger U.S. currency makes dollar-priced metals more expensive for holders of other currencies.
Federal funds futures currently price in no rate cut in March and a lower than 50% chance of easing in May, according to LSEG's rate probability app.
Data on Tuesday showed U.S. consumer prices increased more than expected in January amid rises in the costs of shelter and healthcare.
Copper, widely used in power and construction, is down more than 4% this month on concerns about demand from top consumer China and its property sector in particular, though activity is muted this week as China celebrates the Lunar New Year.
In other metals, LME aluminium eased 0.3% to $2,216.50 a ton, nickel was down 0.2% at $16,230, zinc slipped 0.3% to $2,308, while lead rose 0.4% to $2,005. Tin fell 1% to $27,300.
(By Commoditiescontrol Bureau: 09820130172)
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