India Base Metals
All up as dlr weakens after Fed's 50 bps rate cut
This story was originally published at 20:03 IST on 19 September 2024
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By Ashutosh Pati
MUMBAI – Futures contracts of all base metals rose on the Multi Commodity Exchange of India, tracking gains on the London Metal Exchange, because of a weaker dollar, which makes commodities priced in the greenback cheaper for holders of other currencies. The sentiment was boosted by a 50-basis-point interest rate cut by the US Federal Reserve late on Wednesday. Lower interest rates reduce borrowing costs for consumers and aid demand.
At 1713 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.3% at 100.66.
The US Federal Open Market Committee cut the federal funds target range by 50 basis points to 4.75-5.00% at its two-day September meeting ending Wednesday. "The economic outlook is uncertain, and the Committee is attentive to the risks to both sides of its dual mandate," the US Federal Reserve's policy release said.
COPPER prices rose on the MCX, tracking gains on the LME, buoyed by signs of increased demand from China, Kotak Securities said in a note. LME Copper hit a two-month high of $9,477 per tn.
ALUMINIUM prices rose on the MCX, tracking gains on the LME, because of a weak dollar.
At 1828 IST, on the MCX, the September futures contracts of:
- Aluminium was at 231.95 rupees per kg, up 0.5%
- Copper was at 816.30 rupees per kg, up 0.9%
- LEAD was at 184.90 rupees per kg, up 0.5%
- ZINC was at 269.60 rupees per kg, up 1.1%
Trading levels for the day on the MCX:
- Aluminium contract seen at 229.20-235.00 rupees
- Copper contract seen at 806.00-823.00 rupees
- Lead contract seen at 181.45-187.00 rupees
- Zinc contract seen at 264.55-272.00 rupees
End
US$1 = 83.68 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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