Copper closes down 1.13% as dollar strengthens – China’s economic worries weigh on demand.

Copper contracts closed lower on Wednesday (Aug. 17) as the strong dollar made dollar-denominated copper contracts more expensive for investors in other currencies.

Copper fell 4.1 cents, or -1.13%, to close at $3.5835 per pound.

The dollar index against the six major currencies of a basket of currencies rose 0.07% to 106.5760.

The outlook for copper demand was also negatively impacted by disappointing economic data from China. The National Bureau of Statistics of China (NBS) reported that retail sales increased by 2.7% year-on-year in July, slowing down from the 3.1% growth in June.

Chinese industrial production rose 3.8% in July, slowing from the 3.9% increase in June.

Meanwhile, fixed capital investment increased by 5.7% year-on-year in the first seven months of this year.

Leave a Reply

Change Language
%d bloggers like this: