Copper Bounces Off Lows as Dollar Strength Woes Persist

Copper prices rebounded slightly on Friday, but the metal still notched its worst weekly fall since April due to a strong US dollar. The benchmark three-month copper price on the London Metal Exchange rose 0.32% to $14,289 per metric ton by 0300 GMT.

The recovery was driven by supply concerns, particularly in Chile, where copper output fell 12.8% year-on-year in August. The decline was attributed to difficulties maintaining aging infrastructure and operating conditions at the Escondida mine, which is facing a potential strike after supervisors rejected a collective contract offer.

However, the gains were short-lived as the US dollar reached a 17-month high due to concerns over inflation and government debt. This led to increased borrowing costs across the globe, weighing on copper prices.