India copper futures rose more than 3 percent on Monday buoyed by strong overseas markets, where a weak dollar and strong Chinese data spurred buying, analysts said. However, a strong rupee, that makes the dollar-quoted asset cheaper, restricted the upside, they added. The most active June copper contract MCCM9 was 2.99 percent higher at 236.05 rupees per kg at 3:39 p.m., after having struck an intra-day high of 237.1 rupees earlier. The dollar tumbled broadly hitting multi-month lows against commodity-related currencies, the euro and sterling as optimism about the global economy continued to boost currencies perceived to be riskier. [USD/] China's official purchasing managers' index for May marked the third month of expansion of activity in manufacturing, the China Federation of Logistics and Purchasing said. [ID:nBJB000616] Overseas copper prices have risen 61 percent this year and dealers are looking for the rally to continue, at least in the short term, as rising equities and a fall in the dollar sharpen appetite for riskier investments. "Chinese PMI numbers and a weak dollar is supporting prices," said Somnath Dey, in-charge metals and energy research with Religare Commoidties. "The trend is still up, though minor corrections could not be ruled out," said Amrut Deshmukh, a senior technical analyst with Way 2 Wealth Securities. "The immediate target is 245 rupees, which would lead to a breakout," added Deshmukh. "Copper could even test 250 rupees in the short-term on hopes of global economic recovery," said Religare's Dey.

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