Copper falls by 1.83% on eurozone crisis fears, strong dollar

Copper......

Copper prices fell by 1.83 per cent on Monday at the domestic markets after an unusual bailout proposal for Cyprus renewed concerns of a euro zone crisis which reduced the demand outlook for the industrial metal. The EU and the IMF agreed on a 10 billion euro bailout package for Cyprus but the aid called for a one-time levy of 6.75 per cent on deposits of less than 100,000 euros and 9.9 per cent above that to raise 5.8 billion euros, a move that may severely hit investor confidence in weaker euro area economies. At the MCX, copper futures for April 2012 contract were trading at Rs. 416.10 per 1 kg, down by 1.83 per cent, after opening at Rs. 423.50 against the previous closing price of Rs. 423.85. It touched the intra-day low of Rs. 415.25 till the trading. (At 11.27 AM today). Prices also fell as consumer confidence in the US fell to the lowest level since December 2011 in March 2013 in turn dimming the demand prospects for the metal. The consumer confidence index fell to 71.8 in March 2013 from 77.6 in February 2013, the preliminary reading of the University of Michigan and Thomson Reuters showed. Moreover, stronger dollar makes copper expensive for those holding other currencies, thus increasing demand. The U.S. dollar index, a measure of the value of the United States dollar relative to a basket of foreign currencies, was trading 0.72 per cent higher at 82.851 on the Inter-Continental Exchange (ICE) at 11.30 am IST. At COMEX, copper futures for March 2013 contract traded at US$3.4345 per pound, down by 2.44 per cent. It opened at US$3.5090 against the previous closing price of US$3.5205. It touched the intra-day low of US$3.4175 till the electronic trading. (At 11.28 am IST).