MCX Copper Flattens On Rupee Gains

Copper......

MCX Copper futures are trading in a flat manner today in early moves. The global prices edged up following reports that troubled nation Cyprus finally reached a deal with its European and international lenders. This calmed worries pertaining to its financing conditions in the short term. Equities rose on this and LME Copper also added around US$ 00 to trade at $7697 per tonne.

The sentiments in world markets improved after the cash-strapped European island nation managed to carve out a bargain with the European Central Bank (ECB), the European Commission and the International Monetary Fund — collectively known as the Troika — clearing the main hurdle to securing 10 billion euros (around $13 billion) in crucial financing.

Last week, Copper futures edged up on bargain hunting after the spate of selling witnessed earlier. The world equities extended losses as the worries pertaining to Cyprus yet again triggered a sell off though copper benefited from a rather lax undertone in US dollar and ideas that Chinese growth would stay on track.

However, the US dollar failed to hold on to a four month high against the Euro and pulled copper up from its lows. A persistent rise in LME inventories could keep a lid on copper. The warehouse stocks are currently at a ten-year high. This could keep a tab on the metal today even if the equities extend their rise.

MCX Copper futures for April are trading at Rs 418.90, down Rs 0.85 per kg as the Indian Rupee gained. The BSE Sensex soared by more than 100 points and Rupee logged in smart gains, nearing 54 per US dollar levels. Euro jumped against the dollar in global markets following the Cyprus deal and is currently hovering at a one week high of 1.3036 against the greenback.
Source by Commodity Insights