Copper plunges 1.2% on global cues

Copper prices tumbled 1.25% to Rs 303.90 per kg in futures market today as speculators indulged in reducing positions after select base metals slumped to multi-year lows in global markets.

At the Multi Commodity Exchange, copper for delivery in November traded lower by Rs 3.85, or 1.25%, to Rs 303.90 per kg in a business turnover of 1,232 lots.

Also, metal for delivery in far-month February next year fell by Rs 3.60, or 1.14%, to Rs 311 per kg in 57 lots.

Market analysts said most base metals retreating to multi-year lows on concerns over faltering Chinese demand and the dollar traded at its strongest in more than a decade, weighed on copper futures here.
 

A strengthening dollar on expectations the US will raise interest rates makes dollar-denominated commodities more expensive for buyers in other currencies.