Copper futures on MCX slipped around 1% to ₹1,196 per kg, broadly tracking weakness across the metals complex as bullion prices corrected after last week’s rally.
The decline comes as the US dollar strengthened slightly, weighing on commodity prices. A firmer dollar makes dollar-denominated metals more expensive for holders of other currencies, typically pressuring prices across base and precious metals alike.
Copper is also reacting to shifting rate-cut expectations in the US. After softer inflation data boosted hopes of Federal Reserve rate cuts, markets priced in aggressive easing. However, with traders now awaiting further clarity from upcoming Fed minutes and core PCE data, some profit booking has emerged across commodities.
Additionally, global trading volumes remain thin due to holidays in major markets like China and the US. With Chinese markets shut for the Lunar New Year and speculative activity cooling, base metals including copper are facing short-term pressure.
In essence, copper is following the broader pullback in bullion and commodities, with dollar strength and cautious positioning ahead of key US data acting as the main drags.