Copper returns lower under pressure from dollar and Fed's policies

Copper prices fell on Monday as the dollar climbed against a basket of major rivals, and ahead of the Federal Reserve's policy meeting. 

The Fed is convening tomorrow to decide on policies to control runaway inflation, which carries on till Wednesday.

Analysts now expect the Fed to increase rates by 75 basis points at the September meeting. 

Analysts worry that such aggressive policy tightening by the Fed and other global central banks will weigh heavily on global demand on commodities and minerals. 

Such worries are developing even as Chinese authorities prepare to loosen some Covid 19 restrictions. 

The dollar index rose 0.3% to 110.05 as of 13:32 GMT, with a session-high at 110.1, and a low at 109.4. 

Copper futures due in September fell 0.9% to $3.48 a pound as of 13:28 GMT.