Commodity Updates - Copper prices closed lower rung in the domestic market on Thursday after the Federal Reserve's first rate hike in almost a decade pushed up the dollar, dabble demand for raw materials. The Fed raised the target for its main short-term rate to a range of 0.25 per % to 0.50 per % from a range of 0 per cent to 0.25 per cent, as widely expected, following the conclusion of its policy meeting. Fed Chair Janet Yellen vowed that the FOMC will not be mechanical in its approach to normalize budgetary policy and that future rate hikes would be gradual and data dependent. However, losses were limited due to the decline in the copper stockpiles at the London Metal Exchange (LME) on account of the strong demand for the commodity. LME copper stocks fell by 300 metric tonnes to 231475 metric tonnes as on December 17, 2015. Copper prices may slump as investors now look ahead to upcoming US data which may determine the health of the world’s largest economy. At the MCX, Copper futures for Feb 2016 contract closed at Rs 304.55 per 1 kg, down by 1.77 per cent opening at Rs 308.75 against the closing price of Rs 310.05. It touched the intra-day low of Rs 302.75 till the closing.
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