Copper Prices Soar as Weaker Dollar and Chinese Stimulus Boost Demand

Copper prices rebounded on Friday due to a weaker dollar and China's pledge to strengthen economic growth. The benchmark three-month copper price on the London Metal Exchange rose by 1.4% to $14,233 per metric ton in official open-outcry trading.

The dollar was set to end a bumpy week lower as investors questioned whether the U.S. Treasury's efforts to calm bond markets would undermine confidence in the currency. A weaker U.S. currency makes dollar-priced metals more attractive for buyers using other currencies, which contributed to copper's price increase.

China's yuan reached a 3-1/2 year peak against the dollar, and the Yangshan copper premium rose by 7% to $93 per ton. Copper inventories in warehouses monitored by the Shanghai Futures Exchange jumped by 28% this week.