Nov. 30 (Bloomberg) -- Copper rose in New York, snapping a two-day slide, as the slump in the value of the dollar made the metal cheaper for buyers holding other currencies.

Prices have jumped 56 percent this year as disruptions at mines limited supply and demand improved from makers of wire and pipe. The dollar traded close to a 20-month low against the euro and dropped to the lowest since September 1992 against the pound.

``Most of this is related to the currency situation,'' said David Meger, senior commodities analyst at Alaron Trading Corp. in Chicago. ``It also goes in line with overall strength of the metals markets.''

Copper futures for March delivery rose 4.05 cents, or 1.3 percent, to $3.1955 a pound on the Comex division of the New York Mercantile Exchange. Prices dropped 1.9 percent in the prior two days. The metal reached a record $4.04 on May 11.

The dollar was poised for the biggest monthly loss against the euro since April on speculation a slowing U.S. economy will prompt the Federal Reserve to cut interest rates.

On the London Metal Exchange, copper for delivery in three months rose $70, or 1 percent, to $7,080 a metric ton at 6:53 p.m.

The gains occurred even as a U.S. housing slump dimmed prospects for demand in the biggest market for copper.

U.S. Housing, Economy

Government reports showed yesterday that the U.S. new-home sales fell more than forecast in October and that the economy grew at the slowest pace this year during the third quarter. Copper prices in New York have fallen 21 percent from a record in May.

``All the fundamental news is not very optimistic,'' David Threlkeld, president of trading company Resolved Inc. in Scottsdale, Arizona. ``There is a fundamental argument that the business is terrible, therefore the price should be lower. The metal is drastically overpriced.''

Nickel prices surged and were the biggest gainers of 19 commodities in the Reuters-Jefferies CRB Index. Nickel rose $1,250, or 3.8 percent, to $33,950 a metric ton on the LME as of 6:53 p.m. Zinc rose $35 to $4,375 a ton. Lead rose $23 to $1,663 a ton.

A futures contract is an obligation to buy or sell a commodity at a fixed price for a specific commodity date.

To contact the reporter on the story: Halia Pavliva in New York at hpavliva@bloomberg.net.

Last Updated: November 30, 2006 13:56 EST