Copper prices fell the most in three weeks as the dollar’s rally damped demand for commodities as a hedge against inflation. The dollar rose to a one-month high against a weighted basket of six major currencies. Raw materials traded in dollars often move in the opposite direction of the greenback. Today, the Reuters/Jefferies Index of 19 metal, energy and agriculture prices was down for the fifth time in six sessions. “The stronger dollar seems to be having more of a bearish influence” on copper, Edward Meir, an analyst at MF Global Ltd. in Darien, Connecticut, said in a report. Copper futures for July delivery dropped 8.3 cents, or 3.8 percent, to $2.1145 at 9:11 a.m. a pound on the Comex division of the New York Mercantile Exchange. A close at that price would mark the biggest drop for a most-active contract since March 30. On the London Metal Exchange, copper for delivery in three months fell $185, or 3.9 percent, to $4,620 a ton ($2.10 a pound). The price reached a record $8,940 on July 2.

Source