June 26, 2008 / 10:18 AM / 12 years ago

Dollar supports India copper, nickel up

MUMBAI, June 26 (Reuters) - Indian copper futures gained on Thursday as the dollar softened after the U.S. Federal Reserve kept interest rates steady, analysts said.

At 3.14 p.m., the benchmark June copper MCCM8 on the Multi Commodity Exchange of India (MCX) was up 0.52 percent at 357.65 rupees per kg.

“The entire complex is taking support from the dollar,” said Amar Singh, head of research, Angel Broking Ltd.

A weak dollar supports commodities denominated in the U.S. unit by making it cheaper for holders of other currencies, and boosts demand.

Buying in June copper was recommended at 355-356 rupees with a stop loss below 352.40 rupees and a target of 359.5-360 rupees, said Angel’s Amar Singh.

Nickel futures rose over a percent on bargain buying on Thursday. The benchmark June nickel MNKM8 was up 1.61 percent at 947 rupees.

Nickel has fallen 9 percent through the year on lack of demand from the stainless steel industry, the metal’s main consumer.

Zinc futures climbed up tracking copper and taking support from the dollar, analysts said.

At 3.14 p.m., the June zinc MZIM8 on the MCX was down 0.73 percent at 81.70 rupees a kg .

Lead futures steadied after continous falls in the previous sessions as the dollar capped losses.

The benchmark lead for June delivery MLDM8 on the MCX was up 0.33 percent at 76.55 rupees per kg from its previous close. (Reporting by Nandita Bose; Editing by Prem Udayabhanu)

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