India copper up over 2 pct on demand hopes, weak dlr

MUMBAI May 8 (Reuters) - India copper futures rose over 2 percent in afternoon trade on hopes of a recovery in global demand, analysts said.

A weak dollar and falling inventories also boosted sentiment, they added.

At 3.44 p.m., the benchmark June copper contract MCCM9 was up 2.14 percent at 238.85 rupees per kg.

"The sentiment in general for copper is supportive. The stress result was also better than expected and there has been a constant fall in copper stocks, which is signalling the return of demand, an analyst with a Delhi-based brokerage said.

The dollar slipped, while the euro rose on Friday ahead of a key U.S. employment report, as expectations the pace of job losses may be slowing prompted some traders to take on more risky positions.[USD/]

A weak dollar makes metals cheaper for holders of other currencies and boosts demand.

On Friday, inventories on the London Metal Exchange dropped another 4,900 tonnes to 389,000, the lowest level since mid-January.

Traders awaited the U.S payrolls data due later in the day for further clues, analysts added.

All the other base metals in the complex traded up tracking copper.

At 3.56 p.m., the benchmark May nickel contract MNKK9 was up 2.51 percent at 658.5 rupees per 100 kg.

The May zinc contract MZIK9 was up 0.98 percent at 77.3 rupees and May lead MLDK9 was up 1.68 percent at 72.75 rupees per 100 kg.

(Reporting by Nandita Bose; Editing by Prem Udayabhanu)