Bloomberg reported that copper prices fell the most in 2 months as the dollar's rally damped demand for commodities as a hedge against inflation. The dollar rose to a one month high against a weighted basket of 6 major currencies. Raw materials traded in dollars often move in the opposite direction of the greenback. The Reuters/Jefferies Index of 19 metal, energy and agriculture prices was down for the fifth time in six sessions.

Mr Edward Meir analyst at MF Global Limited said in a report that "The stronger dollar seems to be having more of a bearish influence on copper."

Copper futures for July delivery dropped by 9.7 cents or 4.4% to USD 2.1005 a pound on the Comex division of the New York Mercantile Exchange. A close at that price would mark the biggest drop for a most active contract since February 17th 2009. The dollar index gained as much as 1%. The gauge has climbed 6.6% this year, while the CRB index has declined 4.4%.

The index of US leading economic indicators in March fell more than forecast, indicating any recovery from what may be the longest recession in the postwar era is still many months away. US equities dropped following 6 straight weekly gains. The Standard & Poor’s 500 Index fell as much as 3.4%. Copper jumped 20% in March as the S&P rose 8.5%.

(Sourced from www.bloomberg.net)