Copper falls as Fed rates outlook lifts dollar

Copper slipped on Thursday, pressured by a sharp rise in the dollar after the US Federal Reserve signalled interest rates could rise faster than expected. Three-month copper on the London Metal Exchange (LME) slipped 0.4 per cent to $6,902 a tonne at 0958 GMT, reversing small gains in the previous session. The US central bank on Wednesday renewed its pledge to keep interest rates near zero for a ‘considerable time’, but also indicated it could raise borrowing costs faster than expected when it starts moving. The outlook for future interest rates lifted the dollar to a four-year high against a basket of currencies, in a move that makes commodities priced in the US dollar more expensive for holders of other currencies. Prices have lost momentum since hitting a one-week high at $6,992 a tonne earlier this week, but are still well above a 12-week low of $6,734 hit on Sept. 11. Also putting pressure on copper prices, China's new home prices fell in August for a fourth straight month, underlining a deepening downtrend in the property market that is increasingly weighing on the broader economy, according to Reuters.