July 27 (Reuters) - Shanghai and London copper hit
multi-week highs on Tuesday, as a softer dollar made
greenback-priced metals cheaper to holders of other currencies.
The dollar eased early on Tuesday just below recent peaks,
but the safe-haven currency rebounded later in the session as
investors turned their focus to this week's Federal Reserve
meeting for clues on the policy outlook.
The most-traded September copper contract on the Shanghai
Futures Exchange climbed as much as 3.1% to 72,740 yuan
a tonne, its highest since June 3, before easing to close at
71,770 yuan a tonne, still up 1.7%.
Three-month copper on the London Metal Exchange fell
1.1% to $9,706 a tonne at 0743 GMT, retreating from a high level
unseen since June 15 of $9,924 a tonne hit earlier in the
Sentiment was cautious as investors awaited comments from
the Fed due on Wednesday for clues on its interest rate policy
that would impact the dollar and liquidity in the financial
The dollar index will rebound and funds will be driven back
to the United States when the Fed conducts its tapering policy,
Huatai Futures said in a report.
Historical reviews showed that tapering will enhance risk
asset adjustments, it added.
* Healthy demand from stainless steel mills and electric
vehicle battery makers is expected to underpin nickel prices
over coming months, but rising supplies from Indonesia are
likely to weigh next year.
* Miner Rio Tinto said on Monday it planned to cut
production at its BC Works aluminium smelter in Kitimat, Canada
to 35% following a strike.
* LME nickel fell 2.2% to $19,275 a tonne and
aluminium declined 1.5% to $2,481 a tonne, while both
ShFE and LME tin hit their record peaks before
reversing course to retreat later in the session.
* For the top stories in metals and other news, click
(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu
and Amy Caren Daniel)