Copper futures rose, snapping the longest slump in 18 years, as the dollar’s decline boosted the investment appeal of commodities.
The greenback fell for the second straight day against a basket of 10 major counterparts as some emerging-market currencies advanced. The Standard & Poor’s GSCI Spot Index of 24 raw materials headed for the biggest gain in a week.
“Most of the selloff was due to declining data coming out of China and the strength of the dollar,” Brian Booth, a senior market strategist at Long Leaf Trading Group in Chicago, said in a telephone interview. “Today’s rally could be because of a weaker dollar. It’s also a technical bounce.”
Copper futures for March delivery rose 0.3 percent to settle at $3.192 a pound at 1:21 p.m. on the Comex in New York. The price dropped in the previous nine sessions, the longest slump since December 1995.
The 14-day relative strength index fell below 30 in the previous two sessions, a signal to some analysts that the commodity is poised for a rebound.
On the London Metal Exchange, copper for delivery in three months increased less than 0.1 percent to $7,041 a metric ton ($3.19 a pound).
Lead, aluminum and tin gained on the LME, while nickel and zinc declined.
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