Thu Sep 3, 2009 4:27pm IST
MUMBAI, Sept 3 (Reuters) - India copper futures edged higher on Thursday afternoon, buoyed by a weak dollar, with traders awaiting U.S. jobs data for direction in the base metals complex, analysts said.
The most-traded November contract MCCX9 was 0.88 percent higher at 308.00 rupees per kg at 4:22 p.m., after hitting a high of 309.3 rupees earlier. The contract has shed 3.9 percent in the previous three sessions.
The euro edged higher against the dollar and yen ahead of a European Central Bank policy meeting widely expected to leave rates unchanged. [USD/]
The U.S. non-farm payrolls data, due on Friday, is expected to give leads on health of the world's largest economy. [ID:nLV55839]
"The euro has bounced back and that is supporting (copper) prices," said Priyank Upadhyay, head of research with Commtrendz Research. "It is just a corrective pull-back after days of sell-off."
"We expect copper to trade in the range of 304-312 (rupees)," said Kapil Gandhi of STCI.
The base metals complex may see further declines in the near-term as prices have far exceeded fundamentals, they added.
"We could see more bearishness in copper on weak fundamentals. If copper stays below 315/317 rupees, we expect prices to decline to 292/290 rupees," said Upadhyay.
Domestic copper, used in power and construction, has seen prices double this year on a combination of Chinese stockpiling, speculative buying and improving macro data.
In other base metals, zinc for September delivery MZIU9 was 1.46 percent higher at 90.25 rupees per kg, while September nickel MNKU9 was 1.59 percent higher at 898.40 rupees per kg
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