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MTECHTIPS:-Copper Losses Momentum As China Devalues Currency

MTECHTIPS:-Copper Losses Momentum As China Devalues Currency

Copper again dropped down after the issues of Chinese economy and the uncertainty of the US Fed to raise interest rates gained ground. Indian markets saw Copper plummeting to Rs 332 per kg, down from Rs 339 per kg a day earlier. China devalued the yuan by nearly 2% and declining it to levels of 2012. This means that the policymakers are trying hard to make the exports more competitive then imports and boost the economy. This will also mean that Copper imports will get affected, which will be a double blow as seasonal lean is already looming on the demand. Copper prices for September delivery on the Comex division of the New York Mercantile Exchange dropped 4.4 cents, or 1.81%, to trade at $2.356 a pound. Copper prices have been under pressure in recent weeks amid growing concerns over the health of China’s economy. Meanwhile, in the news were the comments of Federal Reserve Governor that sparked row of whether US Fed rates hikes will be seen this year. Fed Governor Stanley Fischer said Monday the central bank is concerned about low inflation and won’t start to raise rates before it sees inflation returning to more normal levels.

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