Copper falls by 1% as China again lowers yuan

Subdued demand at the domestic spot markets also affected prices

Extending its slide, copper futures fell by another 0.96% to Rs 329.20 per kg today as speculators engaged in trimming positions after China lowered the yuan against the dollar for the second straight day amid subdued demand at the domestic spot markets.

Copper for delivery this month fell by Rs 3.20, or 0.96% to Rs 329.20 per kg at the Multi Commodity Exchange in a business turnover of 3,293 lots.

The metal for delivery in far-month November shed Rs 3.25, or 0.96%, to Rs 336.50 per kg in a business volume of 187 lots.

Analysts said a weakening trend in base metals at the London Metal Exchange (LME) after China devalued its currency against the dollar for the second day today, reflecting a slower outlook for growth as the central bank stuck to its plan to give market forces more sway in determining the exchange rate, put pressure on copper futures here.

The currency weakened 1.6% to 6.4264 per dollar after a 1.8% tumble yesterday.

Globally, copper for delivery in three months traded was trading 1% lower at LME.