USD Index Falls Below 99, Copper Prices Get Boost

Copper prices experienced sharp fluctuations between August 17-21. The U.S. Treasury's announcement of expanded buybacks of long-term bonds led to a decline in Treasury yields, injecting dollar liquidity into the market and supporting copper prices.

The Federal Reserve minutes suggested that some officials supported rate hikes, but the market widely expects no further hike before December, contributing to a drop in the USD index below 99.

Low LME copper inventory caused LME prices to surge last Monday, lifting China's copper prices. However, as LME inventory increased and market sentiment eased, copper prices gradually retreated.