Copper Prices Rise as Weaker Dollar Fuels Demand

Copper prices rose after the Federal Reserve's decision to keep interest rates unchanged, causing the US dollar to weaken and boosting dollar-priced metals.

The three-month copper price on the London Metal Exchange (LME) climbed 0.75% to $13,676 a metric ton, while the Shanghai Futures Exchange (SHFE) copper contract slipped 0.1% to 104,690 yuan a ton.

The decline in the dollar tends to support commodities priced in dollars because they appear cheaper to buyers using other currencies.

Traders also reduced their expectations of another Fed rate hike in September, which can slow growth and cool demand for industrial metals like copper.