DOL­LAR IN­DEX

Financial Chronicle - - RISING METTAL STOCKS -

A weak US dol­lar sup­ported prices as well. The Dol­lar In­dex, which mea­sures value of the US dol­lar against a bas­ket of for­eign cur­ren­cies, slipped more than 12 per cent this year. A strong US cur­rency makes dol­lar de­nom­i­nated com­modi­ties ex­pen­sive for hold­ers of other cur­ren­cies. At the same time, the In­dian ru­pee has gained about 7 per­cent dur­ing this pe­riod.

De­clin­ing in­ven­to­ries in the LME ware­house is the other rea­son that sup­ported an up­trend. LME stocks of many base me­tals are cur­rently placed at multi-year low lev­els.

Look­ing ahead, fur­ther sharp ral­lies are least ex­pected due to lack of strong fun­da­men­tals. Re­ports in­di­cate that the mine pro­duc­tion is re­cov­er­ing from dis­rup­tions ear­lier this year with many of them re­port­ing growth in out­put, which may in­crease the sup­ply later.

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