Copper edges up amid concerns about Fed rates

Copper prices stabilized on Thursday as the dollar dipped against most major rivals, and amid ongoing uncertainty about the Federal Reserve's policies, and with expected healthy demand from China. 

Copper three-month futures at the London Exchange fell 0.2% yesterday to $8750 a tone. 

The Fed

Fed Chair Jerome Powell said it's highly likely the central bank will hike interest rates by more than expected to contain inflation.

Such remarks sent the dollar to three-month highs yesterday, hurting dollar-denominated commodities. 

Demand is expected to improve on copper for its wide usage in energy, construction, and transport. 

Investors expect moderate growth in demand this year as the real estate sector improves. 

China reported an improvement in new and used commercial housing sales in January and February. 

The Dollar

The dollar index fell 0.3% to 105.3 with a session-high at 105.7, and a low at 105.1. 

Copper futures due in May rose 0.1% to $4.02 a pound as of 15:55 GMT.