U.S. copper rallied more than 4 percent today as the dollar extended its decline against the euro on worries about the health of the economy in the United States.
The Dollar hit a record low of $1.5302 per euro on Wednesday prompting traders to invest money into commodities.
Copper futures for May delivery rose 16.05 cents or 4.2 percent to $3.9820 a pound on the Comex division of the New York Mercantile Exchange on Wednesday. This is the highest level since copper prices reached $4 a pound on May 2006.
However, a report from the U.S. service sector eased concerns of an economic slowdown in the second largest consumer of copper in the world. The U.S. Institute for Supply Management reported its non-manufacturing index rose to 49.3 compared to a record low of 44.6 in January, Bloomberg noted. The index contracted less than forecast.
London copper for delivery in three-months fell $169 or 1.95 percent to $8,483 a metric ton today.