Copper Surges on Weaker Dollar and Tight Inventories

Copper prices have surged on Thursday, buoyed by a weaker dollar and dwindling inventories. The benchmark three-month copper price on the London Metal Exchange rose 1.2% to $13,747.50 per metric ton.

The decline of the dollar has made greenback-denominated commodities more affordable for buyers using other currencies, boosting their prices. According to the CME Group's FedWatch tool, markets are now pricing in a 58% chance of a Fed rate hike in September, down from 81% before the policy statement.

Tight inventories and supply concerns have also supported copper prices. LME copper stocks fell by 6,900 tons to 255,400 tons, leaving the cash LME copper contract at a more than $30 a ton premium over the three-month forward, indicating tight near-term supply.