Copper declines as dollar strengthens as eyes fixed on Fed

Copper futures fell in American trade as the dollar index hit the highest since November 21, following a basket of data from the US, the world's largest economy, while the Federal Open Market Committee starts its two-day policy meeting in Washington. 

As of 03:24 GMT, copper futures due on March 15 dipped 0.32% to $300.20 a pound from the opening of $301.15, while the dollar index rose 0.19% to 94.07 from the opening of 93.87. 

Earlier US data showed producer prices rose 0.4% in November in line with expectations and with no change from October's reading, while core prices, excluding food and fuel, rose 0.3%, beating expectations of 0.2% and just below October's 0.4% rise. 

Now markets look upon the FOMC's last 2017 meeting today and tomorrow, with policymakers expected to unveil their three-year forecasts for inflation, growth, unemployment, and interest rates, while expected to also hike rates by 25 basis points for the third time this year.