Copper prices weaken amid strong dollar and China data

Copper futures stayed below $4 per pound on Friday, hovering near their lowest levels since August 2024, as a strengthening dollar continued to pressure commodity prices.

Copper prices weaken amid strong dollar and China data

The dollar hit a more than two-year high on Thursday, driven by expectations of stronger US economic performance and fewer rate cuts from the Federal Reserve this year. A stronger dollar makes commodities in greenbacks more expensive for holders of other currencies. Additionally, weaker-than-expected manufacturing data from China dampened demand prospects for the world’s top copper consumer. The Caixin/S&P Global Manufacturing PMI fell to 50.5 in December, down from 51.5 in November and missing the forecast of 51.7.

China's proactive policies and rate cuts stabilize market sentiment

However, this year, Chinese authorities' commitment to "more proactive" macroeconomic policies and lower interest rates helped stabilize market sentiment.