Branch² Intelligence
LME copper prices fall as escalating US-Iran war renews inflation risks, interest rate hike fears
Key takeaway
LME copper prices fell 0.64% as US-Iran tensions spiked energy costs and inflation fears.
- Step 1US-Iran tensions escalate, driving crude oil prices up and strengthening the US dollar.
- Step 2Higher energy costs and a stronger USD reduce risk appetite for commodities, causing LME copper prices to fall.
- Step 3Indian copper import costs rise as LME prices and USD/INR exchange rate move adversely, squeezing margins for copper-using SMEs.
Source: IN:Mint
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