Copper prices closed down on Tuesday in New York after the dollar gained on a Federal Reserve attempt to stave off a recession in the U.S.
Today the U.S. Federal Reserve announced measures to inject up to $200 billion into the financial system to diminish worries of a credit crunch in the second largest consumer of copper in the world.
The U.S. Dollar Index dropped to 72.462 on March 7, the lowest ever, noted Bloomberg. However today the currency climbed to $1.5283 per euro and gained in other major currencies after the Fed exposed its plan.
A stronger U.S. currency makes dollar denominated metals less attractive to foreign investors.
Copper futures closed down 0.95 cents or 0.25 percent to $3.7855 a pound on the New York Mercantile Exchange Comex division. Last week the red metal reached a record high of $4.024.
Copper market is supported by a decrease in London's Metal Exchange inventories and production disruptions.
LME copper inventories fell 1,675 metric tons at 130,250 today. Copper stocks in the COMEX division lost 121 short tons to 12,519 short tons yesterday.
As of the production, in Papua New Guinea a strike halted production at Ok Tedi Mining's copper and gold mine, a spokesman for Inmet Mining said to Reuters.
In the London Metal Exchange the prices also dropped $235 or 2.72 percent to $8,393 a metric ton.