Melbourne
London copper fell on Thursday after solid U.S. jobs data increased the likelihood of an interest rate hike this month and on signs that disruption at the world´s biggest copper mine may soon ease.
U.S. private sector job growth recorded its biggest increase in more than a year in February amid a surge in construction and factory hiring, suggesting the economy remains on solid ground despite an apparent further slowdown in the first quarter.
That pushed up the dollar close to its strongest level this year, eroding the purchasing power of those paying for commodities in other currencies.
"A Fed rate hike after the strong U.S. job report may strengthen the dollar, hitting copper, which is denominated in dollars," Argonaut Securities said in a report.
"(But) underlying fundamentals continue to reflect increasing demand and supply shortages.