Copper futures rose close to the highest record as a falling dollar prompted demand for metals as a hedge against inflation.

Futures of the metal ended up at $4 a pound which was the highest priced reached for the second-month contract.

Copper prices Ended up 10.95 cents or 2.8 percent to $4 a pound on the Comex division of the New York Mercantile Exchange on Wednesday.

Today's increase was close to the record of $4.04 in May 2006.

Prices in the commodity sector surged today, with oil also rising to a record high over $112 a barrel.

A weak dollar affected copper prices today as the U.S. currency has dropped 7.9 percent this year against the euro.

The euro rose to $1.5812 and was trading at the end at $1.5821.

Demand is expected to rise as supplies are tight due to slumping global inventories of copper and potential supply disruptions in major producers.

Copper Futures in the London Metal Exchange rose $190, or 2.2 percent, to $8,730 a metric ton.