Copper declined for a third day as the dollar strengthened after a Federal Reserve decision to taper stimulus and funding costs in China surged, curbing the demand outlook for industrial metals.
The contract for delivery in three months on the London Metal Exchange dropped 0.5 percent to $7,231 by 4:49 p.m. in Tokyo, bringing losses this year to 8.7 percent. The price touched $7,307.70 on Dec. 16, the highest level since Oct. 23.
The Bloomberg U.S. Dollar Index, which tracks the greenback against 10 major peers, surged to a two-week high after yesterday jumping by the most since Nov. 8 on the Fed’s plans to cut its monthly bond buying to $75 billion from $85 billion. A strong dollar boosts costs for metals buyers in other countries. China’s interest-rate swaps hit a record as the central bank refrained from injecting cash into the financial system.
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