Copper falls by 0.8% as China lowers yuan

Subdued demand at the domestic spot markets also affected prices

Extending its slide, copper futures fell by another 0.84% to Rs 313.25 per kg today as speculators engaged in cutting down their bets after China lowered the yuan against the dollar amid subdued demand at the domestic spot markets.

Copper for delivery in far-month April fell by Rs 2.65, or 0.84% to Rs 313.25 per kg at the Multi Commodity Exchange in a business turnover of 20 lots.

The metal for delivery in February shed Rs 2.50, or 0.80%, to Rs 308.60 per kg in a business volume of 1,695 lots.

Analysts said a weakening trend in base metals overseas after China devalued its currency against the dollar amid worries over slowing growth in the world's second-largest economy, which have roiled investors worldwide, and with pressure on its currency from capital outflows, put pressure on copper futures here.

China's central bank lowered its currency yuan by 0.51% to 6.5646 per dollar, the lowest since March 2011.

Globally, copper for delivery in three months was trading 0.6% lower at London Metal Exchange.