Copper futures in New York rose nearly 1.5 percent Thursday as funds took advantage of a weaker dollar and lifted prices to three-week highs, traders said. "The market look like it's back. We broke out above $1.3300 a lb this morning, so the funds kicked in after the breakout," said one floor source.
Benchmark December copper on the New York Mercantile Exchange's COMEX division was up 1.90 cents at $1.3490 a lb, trading from $1.3270 to $1.3560. November gained 1.30 cents to $1.3550.
Three-months copper broke above $2,900 resistance in midsession trade on the London Metal Exchange (LME) on the back of a weaker dollar and after the re-election of US President George W. Bush ignited fund buying.
The dollar came within reach of record low levels against the euro as investors resumed selling the US currency on speculation the Bush administration would tolerate a weaker currency to help narrow the country's widening current trade deficit.
The euro was lurking around session highs at $1.2886, not far below the record highs the euro hit around $1.2927 in February according to Reuters data.
LME three-months copper was up $40 at $2,9125 a tonne from Wednesday's kerb close at $2,875.
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