Copper prices declined on Wednesday on rising uncertainty about additional US fiscal stimulus to help boost a pandemic-ravaged economy and as the dollar strengthened, making the metal more expensive for holders of other currencies.
Three-month copper on the London Metal Exchange fell 1.4 percent to $6,294 a ton, while the most-traded September copper contract on the Shanghai Futures Exchange declined 1.8 percent to 49,860 yuan ($7,172.14) a ton.
A stalemate between the Republican White House and congressional Democrats over coronavirus relief ended in a fourth day without talks on Tuesday, with each party blaming the other for intransigence.
Against a basket of currencies, the dollar extended a bounce made last Friday as US-China tensions ratcheted higher with President Donald Trump’s ban on TikTok and WeChat.
Copper prices dipped as a stronger US dollar made greenback-denominated LME metals less attractive to buyers using other currencies.
Simmering tensions between Washington and Beijing also pressured prices of the metal as investors feared economic retaliation that could further dampen sentiment and global economic recovery.