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Informist, Tuesday, Aug. 26, 2025

By J. Navya Sruthi

MUMBAI – Futures contracts of copper fell on the Multi Commodity Exchange of India Tuesday as the local currency, rupee, closed at a two-week low against the dollar. However, futures contracts of the red metal rose on the London Metal Exchange as the US looks to ramp up the metal's importance, analysts said. However, prices of other base metals on the domestic exchange were in the green tracking LME. 

The rupee ended at a two-week low against the dollar due to foreign fund outflows as investor sentiment turned jittery ahead of the additional 25% US tariffs, scheduled to come into effect Wednesday. After hitting a three-week low of 87.8050 a dollar, the Indian unit pared some of the losses and ended at 87.6825, against 87.5800 a dollar Monday. When the rupee appreciates against the dollar, prices of rupee-denominated commodities such as copper fall.

Prices of the red metal and other base metals on the LME rose due to rising hopes of a rate-cut by the US Federal Reserve in the September meeting. US Federal Reserve Chair Jerome Powell signalled that the central bank might ease monetary policy in September. He acknowledged growing concerns about employment conditions and emphasised persistent inflation risks. Powell maintained a balanced stance and avoided any firm commitment on interest rate cuts.

Also, the US Geological Survey proposed adding copper to the 2025 draft list of critical minerals, said Daniel Hynes, a senior commodity strategist at ANZ Research, in a note. "Inclusion would enable funding incentives and streamlined permitting for exploration, mining and processing projects."

Further, the dollar index was also down Tuesday, which supported prices of copper on the LME. At 1930 IST, the dollar index, which measures the strength in the dollar against a basket of six major currencies, was down 0.2% at 98.23. 

At 1920 IST, on the MCX, the September futures contract of:
-–ALUMINIUM was at INR 254.8 a kg, up 1%
–-Copper was at INR 890.05 a kg, down 0.1%

–-LEAD was at INR 181.2 a kg, up 0.5%
–-ZINC was at INR 269.7 a kg, up 0.7%

--NICKEL was up 0.5% at INR 1,326.5

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 251.50-INR 257.00
--Copper contract seen at INR 885.00-INR 900.00
--Lead contract seen at INR 179.50-INR 183.50
--Zinc contract seen at INR 264.50-INR 272.50

--Nickel contract seen at INR 1,318.00-INR 1,336.00

End

Edited by Akul Nishant Akhoury

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