SHANGHAI- Base metal prices declined after the Federal Reserve indicated a reduced frequency of US interest rate cuts for the coming year, bolstering the dollar.
The three-month copper on the London Metal Exchange (LME) fell 1.2 percent to $8,923 per metric ton.
The dollar index hovered near a two-year peak, making it more expensive for other currency holders to buy greenback-priced commodities.
On Wednesday, the US central bank cut interest rates by 25 basis points, with Fed Chair Jerome Powell stating that future cuts hinge on high inflation reducing, hinting at economic changes under the Trump administration.
The most-traded January copper contract on the Shanghai Futures Exchange shed 0.3 percent to 73,780 yuan ($10,107.82) a ton by the close of Asia morning trade session.
“Frequent rate cuts like this year are unlikely next year. When the Fed slows cuts, it tends to put a bit of pressure on riskier investments like commodities,” a trader said.
LME aluminum slipped 0.6 percent to $2,514 a ton, zinc eased 0.8 percent to $2,971.5, lead dropped 0.5 percent to $1,971.5, tin slid 2.9 percent to $28,260 and nickel shed 0.8 percent to $15,390.
