METALS-Copper edges higher in thin-volume trade as dollar rally cools

Feb 15 (Reuters) – Copper edged higher on Thursday, buoyed by a slight pullback in the U.S. dollar and lower inventories, although prices were hemmed in a narrow range as markets in top metals consumer China were closed for the Lunar New Year holidays.

Three-month copper on the London Metal Exchange CMCU3 was up 0.3% at $8,218 a metric ton, as of 0302 GMT.

The dollar index .DXY eased 0.1% against its rivals, after hitting a three-month high on Tuesday as traders pushed back bets for a first Federal Reserve rate cut following surprisingly hot U.S. inflation figures. USD/

A weaker U.S. currency makes dollar-priced metals less expensive for holders of other currencies.

Also providing support to copper, LME daily data showed that copper stocks in LME-registered warehouses MCUSTX-TOTAL fell to 133,888 tons as of Feb. 13, the lowest level since September.

Copper, widely used in power and construction, is down more than 4% this month on concerns about demand from top consumer China and its property sector in particular.

Asian stocks rose on Thursday, with the Nikkei breaching a new 34-year peak. MKTS/GLOB

Data showed Japan’s economy slipped into recession as it unexpectedly shrank for a second straight quarter on weak domestic demand.

Among other metals, LME aluminium CMAL3 rose 0.2% to $2,239.50 a ton, nickel CMNI3 was steady at $16,345, zinc CMZN3 gained 0.5% to $2,323 and lead CMPB3 climbed 1.1% to $2,039. Tin CMSN3 fell 0.4% to $27,370.

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