Copper declines over 1% as dollar strengthens

Copper prices declined on Monday amid calm trading as dollar strengthens against most major rivals, while markets await  developments in US debt ceiling talks.

Cautious Outlook

US President Joe Biden and top Congressional Republican leader Kevin McCarthy expressed confidence in reaching a deal in order to raise the government's $31.4 trillion debt ceiling. 

Biden will carry on talks with Congressional leaders about raising the debt ceiling later this week in order to avoid a default that might push the US economy into recession.

McCarthy said the talks will go on in the weekend, with a potential vote on a deal next week, however some sticking points remain. 

US Treasury Secretary reiterated her warnings from a default on payments in June, which will threaten the US's credit rating, and might push the economy into recession.

The Dollar

The dollar index rose 0.1% as of 16:36 GMT to 103.3, with a session-high at 103.3, and a low at  102.9.

A stronger dollar weighs on commodities and industrial metals and makes them costlier to holders of other currencies. 

On trading, copper July futures fell 1.3% to $3.68 a pound as of 16:34 GMT.