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Informist, Monday, Sept. 8, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of most base metals on the Multi Commodity Exchange of India rose Monday, tracking a rise in contracts on the London Metal Exchange because of a weaker dollar. Market sentiment was also lifted after a weak US jobs data bolstered expectations of an interest rate cut by the US Federal Reserve this month.

At 1722 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.3% from the previous close at 97.64. A weaker dollar makes dollar-denominated commodities such as base metals cheaper for those holding other currencies, thereby increasing demand for such metals.

Non-farm payrolls data showed the US economy created 22,000 jobs in August, sharply lower than the 75,000 jobs expected and from 79,000 jobs added in July. The US Fed is now widely expected to cut the federal funds rate next week. Currently, traders see a 92.0% probability of a 25-basis-point rate cut by the Fed, higher than 86.4% last week, according to the CME's FedWatch tool. Lower interest rates typically lead to higher economic growth and an increase in demand for base metals.

"Sentiment was underpinned by expectations of looser US monetary policy after weaker-than-expected jobs data bolstered bets of a Fed rate cut. While copper prices ended little changed last week, the softer labour market outlook raised hopes of improved investment demand," Kotak Securities said in a report.

"COPPER is stuck in a tight range around the psychological level of $10,000 per tonne (on the LME). Producers of the metal sell it when the price hits five figures, but Chinese buyers use the dips to purchase," Alastair Munro, senior base metals strategist at Marex was quoted by Reuters as saying.

At 1730 IST, on the MCX, the September futures contract of:
-–ALUMINIUM was at INR 254.50 a kg, up 0.2%
–-Copper was at INR 899.70 a kg, up 0.3%

–-LEAD was steady at INR 181.30 a kg
–-ZINC was at INR 275.40 a kg, up 0.2%

--NICKEL was at INR 1,344.00 a kg, up 0.7%

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 251.80-INR 257.40
--Copper contract seen at INR 888.10-INR 910.90
--Lead contract seen at INR 180.00-INR 182.50
--Zinc contract seen at INR 270.60-INR 279.20

--Nickel contract seen at INR 1,325.00-INR 1,375.00

End

US$1 = INR 88.26

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Nishant Maher

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