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Metals stable on dollar strength after Trump's tariff remark

The majority of base metals traded in a narrow variety on Tuesday due to a rebound in the U.S. dollar amidst issues over the financial effect of President Donald Trump's tariff talks.

Three-month copper on the London Metal Exchange ( LME) was flat at $9,274 a metric heap by 0333 GMT.

The dollar rebounded after Trump suggested the U.S. could enforce tariffs on Canada and Mexico in the future, however details were doing not have.

The greenback index was last at 108.23, up 0.2% from Monday, however somewhat listed below the 26-month high of 110.17 touched last week.

In his inauguration address, Trump neither targetted China nor did he instantly impose tariffs as previously promised. Rather, he directed federal companies to examine and solution relentless U.S. trade deficits, unreasonable trade practices and currency control by other nations.

A Wall Street Journal report said Trump will avoid executing aggressive tariffs instantly. The report saw the USD tumble, relieving headwinds for the more comprehensive product complex. It also used a moment of relief to product markets, which have actually been concerned about the economic impact of such tariffs, ANZ said.

We are vigilantly looking for prospective policy shifts from the Trump administration, as these might increase volatility in the markets, a trader said.

A more powerful dollar makes greenback-priced commodities more expensive for holders of other currencies.

On the other hand, the Federal Reserve will likely hold interest rates constant at its Jan. 29 meeting and resume decreases in March, according to a slim majority of economic experts polled by Reuters.

LME aluminium reduced 0.1% to $2,689, tin was flat at $30,400, nickel fell 0.2% to $16,070, lead shed 0.7% to $1,971 and zinc slid 0.1% to $ 2,960.

The most-active copper contract on the SHFE was flat at 75,670 yuan ($ 10,404.66) a load by the close of Asia early morning trade session.

SHFE aluminium fell 0.1% to 20,460 yuan a ton, nickel added 0.2% to 128,200 yuan, zinc rose 0.2% to 24,260 yuan, lead acquired 0.2% to 16,760 yuan and tin advanced 1.8% to 252,670 yuan.

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(source: Reuters)