Fri Aug 21, 2009 3:52pm IST
MUMBAI, Aug 21 (Reuters) - India copper futures reversed early losses to trade slightly higher on Friday afternoon, as a weak dollar supported the base metals complex, analysts said. The most-active August copper contract MCCQ9 was 1.10 percent higher at 297.90 rupees per kg at 3:49 p.m., after hitting a low of 291.3 rupees earlier.
The euro rose to a one-week high against the dollar after stronger-than-forecast surveys on the euro zone manufacturing and services sectors strengthened the view the region is on the path to recovery. "The strength in Euro (against the dollar) is supporting copper," said Praveen Singh, an analyst with Sharekhan Commodities. Copper's support is placed at 287, while resistance is placed at 310 rupees.
"Prices may consolidate for a while, but they are way ahead of fundamentals," Singh said.
The red metal has gained over 100 percent, on growing optimism about the economic recovery overseas leading to demand for the industrial metal.
Copper may trade in the range of 287-297 rupees for the day, said Kapil Gandhi of STCI Commodities.
Meanwhile, copper stocks in warehouses monitored by the Shanghai Futures Exchange CU-STX-SGH rose by 5,543 tonnes, or 7 percent from a week earlier, to a two-year peak of 81,650 tonnes, according to data released by the exchange.
While stocks in the warehouses monitored by the London Metal Exchange rose 125 tonnes to 293,125 tonnes on Friday
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