SHANGHAI- Most base metals declined but remained rangebound due to a rebound in the US dollar amid concerns over the economic impact of President Donald Trump’s tariff talks.
Three-month copper on the London Metal Exchange (LME) slid 0.4 percent to $9,242 a metric ton.
The dollar rebounded after Trump suggested the US could impose tariffs on Canada and Mexico in the near future, though details were lacking.
The greenback index was last at 108.46, up 0.4 percent from Monday, but slightly below the 26-month high of 110.17 touched last week.
In his inauguration address, Trump neither targeted China nor did he immediately impose tariffs as previously promised. Instead, he directed federal agencies to “investigate and remedy” persistent US trade deficits, unfair trade practices and currency manipulation by other countries.
“A Wall Street Journal report said Trump will refrain from implementing aggressive tariffs immediately. The report saw the USD tumble, easing headwinds for the broader commodity complex. It also offered a moment of relief to commodity markets, which have been concerned about the economic impact of such tariffs,” ANZ said.
A stronger dollar makes greenback-priced commodities more expensive for holders of other currencies.
Meanwhile, the Federal Reserve will likely hold interest rates steady at its Jan. 29 meeting and resume reductions in March, according to a slim majority of economists polled by Reuters.