Copper hits record highs amid a weakening dollar and the situation in Chile
Copper prices have reached a new high. At the time of writing
Comex rose 1.15% to $4.3870/lb.
Earlier in the morning they were at $4.3943, which was a record high for the last
decade.
The rise in copper comes amid a weakening dollar - its index
dropped to its lowest since early March (90,720), losing 0.12%. More
lower exchange rate boosts demand for commodities because it is more
advantageous for investors using foreign currencies, allowing
them to purchase more.
At the end of the first quarter, the dollar was up 3.7%. According to
Goldman Sachs, its value was inflated by 11%.
In addition to the dynamics of the dollar, the rise in copper prices was helped by
events taking place in Chile. According to The Wall Street
Journal, Chilean port workers called a strike, which
threatening the supply of copper - the country is an active exporter of
of the metal, which accounts for about 25 percent of the world's supply.