Copper falls by 0.2% as China devalues currency

Copper futures fell 0.19% to Rs 338.30 per kg today as speculators trimmed positions amid a weak trend in global markets after China devalued its currency.

Besides, subdued demand at the domestic spot markets too kept pressure.

At Multi Commodity Exchange, copper for delivery in August eased by 65 paise, or 0.19%, to Rs 338.30 per kg in a business turnover of 544 lots.

The metal for delivery in far-month November shed 60 paise, or 0.17%, to Rs 345.40 per kg in a business volume of 10 lots.

Analysts said a weakening trend in base metals at the London Metal Exchange (LME) after China devalued its exchange rate in a move that helps exports and makes imports more expensive for the world's biggest producer and consumer of metals, kept pressure copper futures here.

Meanwhile, the People's Bank of China cut its daily reference rate for the yuan by 1.9%. The change was a one-time adjustment, the central bank said in a statement,

Globally, copper for delivery in three months traded was trading lower at $5,259 per tonne at LME.