Mumbai, 16 Feb (Commoditiescontrol): London Metal Exchange (LME) Copper prices rose to a one-week high on Friday as weaker-than-expected U.S. retail sales data revived hopes for an interest rate cut from the Federal Reserve in June and lifted risk sentiment among investors.
Three-month copper on the LME was up 0.4% at $8,344 a metric ton, hitting its highest since Feb. 8. The contract is up more than 2% so far this week.
Data on Thursday showed U.S. retail sales fell more than expected in January, pulled down by declines in receipts at auto dealerships and gasoline service stations.
The dollar index, which measures the U.S. currency against six major rivals, was up 0.09% at 104.35, having slipped 0.4% on Thursday after a mixed set of U.S. economic data. A weaker U.S. currency makes dollar-priced metals less expensive for holders of other currencies.
According to the CME Fed Watch Tool, traders now see a 78% chance of a rate cut in June.
In the wider financial market, Japan's Nikkei charged towards an all-time high on Friday, helped by a buoyant Wall Street.
Copper, widely used in power and construction, is down more than 3% 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.
Among other metals, LME aluminium was steady at $2,224 a ton, nickel edged 0.1% higher to $16,280, zinc gained 0.2% to $2,360 and lead rose 0.3% to $2,048.50. Tin ticked 0.2% higher to $27,355.
(By Commoditiescontrol Bureau: 09820130172)
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