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Lower dollar propels copper to two-week peak

Copper prices climbed to twoweek highs on Monday after the dollar fell on expectations of rate of interest cuts in the United States, and as the marketplace waited for the result of the U.S. Presidential election today.

Standard copper on the London Metal Exchange (LME). was up 0.6% at $9,626 a metric ton at 1136 GMT from an earlier. session high of $9,723.50 a heap.

The U.S. Federal Reserve is anticipated to cut rate rates by 25. basis points at its meeting on Nov. 6-7, according to analysts. who anticipate more reductions over the coming months.

This is pushing the U.S. currency. When it falls, it. makes dollar-priced metals more affordable for holders of other. currencies and supports need. Traders said much of copper's. rise on Monday was because of buying by funds that trade using buy. and offer signals from numerical models.

Physical traders also said belief was favorable and the. focus was on the U.S. election.

Polls show Kamala Harris and Donald Trump running neck and. neck nationally and in the battleground states expected to. decide the winner of the U.S. election, although the nearness. of the contest means it might take days for a winner to emerge.

Production activity in leading customer China swung back to. growth in October as an expansion in new orders resulted in a pick-up. in production growth, signalling an enhancement in the sector.

Base metals markets are also hoping a meeting of China's top. leaders Nov. 4-8 will choose stimulus steps to stimulate. development.

Weighing on belief, nevertheless, the Yangshan premium. << SMM-CUYP-CN >, a carefully enjoyed sign of China's hunger. for importing copper, was down 30% at $48 a heap given that climbing. to near $70 in early October.

In other metals, aluminium was down 0.1% at $2,597 a. load, zinc fell 0.8% to $3,046, lead slipped 0.3%. to $2,046.5, tin acquired 1% to $32,030 and nickel. was little bit altered at $15,940.

(source: Reuters)