India Base Metals
Down on MCX as rupee rises, up on LME on weak dollar
This story was originally published at 20:07 IST on 23 May 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India Friday, despite positive cues from the London Metal Exchange because of a sharp rise in the rupee against the dollar.
The rupee logged in its biggest single-day gain in over 30 months on Friday and ended at a two-week high of 85.2125 a dollar. When the rupee appreciates against the dollar, prices of dollar-denominated commodities like base metals fall.
However, the losses were limited due to a fall in inventories at warehouses registered with the Shanghai Futures Exchange. COPPER inventories fell by 9,471 tonnes on week to 98,671 tonnes in the week ended Friday, and ALUMINIUM stocks fell by 14,791 tonnes to 141,289 tonnes. ZINC inventories fell by 2,278 tonnes on week to 44,073 tonnes in the week ended Friday and LEAD stocks fell by 7,044 tonnes to 48,428 tonnes.
Base metal contracts on the LME rose due to a weak dollar. At 1926 IST, the dollar index, which measures the strength in the greenback against a basket of six major currencies, was down 0.5% at 99.38. A weaker dollar makes commodities such as base metals, which are priced in the greenback, cheaper for those holding other currencies. "A rebound in US treasuries has helped ease concerns over the country's fiscal health, boosting risk appetite and aiding the metals rally," Kotak Securities said in a report.
At 1927 IST, on the MCX, the May futures contract of:
–Aluminium was at INR 235.15 a kg, down 0.7%
–Copper was at INR 855.35 a kg, down 0.5%
–Lead was at INR 177.15 a kg, down 0.1%
–Zinc was at INR 256.20 a kg, down 1.6%
Trading levels for the day on the MCX:
--Aluminium contract seen at INR 230.80-INR 240.90
--Copper contract seen at INR 844.30-INR 869.70
--Lead contract seen at INR 175.30-INR 178.90
--Zinc contract seen at INR 253.80-INR 263.50
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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