Gains In Indian Rupee Spoils The Party For MCX Copper

Copper.......


The expectations that government will do something on the deficit front in the upcoming budget aided Rupee but spoiled the party for Copper prices. The metal remained declining even when it looked that it had slide too much too fast. An ambitious growth range of 6.1-6.7% in the year 2013-14 shown in the economic survey boosted the Indian Rupee against the US Dollar on Wednesday. The growth rate if achieved would prove fruitful for Foreign Investments in the country. Copper tested a low of Rs 427.6 per kg in intraday trading.

LME Copper was cheering the fact that Federal Reserve Chairman Ben Bernanke gave some ray of hope for the investors. Bernanke has said that the current bond buying programme was essential for US growth. The rise in new home sales was another factor that pumped Copper as the metal is extensively used in construction. LME Copper forwards was trading at $ 7863 per tonne, up $ 70 per tonne.
US Dollar was trading with mild losses against the Euro on Wednesday. The greenback exchanged hands at 1.3092, down 0.25%. Indian Rupee traded at 53.87 against the Dollar, up 0.42%. The Rupee tested a high of 53.61 and a low of 54.09 against the Dollar. Italian 10-bond yields rose to the highest level since December on Tuesday, climbing to 4.91% from 4.37% on Monday, while the yield on Spanish 10-year bonds rose to 5.5% from 5.1%.
MCX Copper April contract was trading at Rs 429.2 per kg, down 0.81%. The prices are supported at Rs 426 per kg. Resistance for the contract is at Rs 433 per kg. Among other metals, Nickel was trading at Rs 901 per kg, down 1% from last night. The prices are expected to find support at Rs 893 per kg.
Source by Commodity Insights