NEW YORK, Sep 16, 2010 (Dow Jones Commodities News via Comtex) --
Copper futures were rising as the U.S. Dollar sank and warehouse inventories of the metal continue to drop.
The most-actively traded copper contract, for December delivery, was recently up 4.35 cents, or 1.3%, at $3.51 a pound on the
Comex division of the New York Mercantile Exchange.
A lower greenback is helping dollar-denominated copper by making it less expensive for buyers using other currencies, boosting demand.
The dollar was weaker against the euro as the common currency climbed on the back of a well-received auction of Spanish government debt.
A trend lower in inventories of copper is also boosting prices.
"Stocks are tight," said Frank Lesh, broker and analyst with FuturePath Trading in Chicago.
Inventories of copper stored in London Metal Exchange warehouses fell 2,350 metric tons Thursday, leaving them at 387,150. The most recent Comex inventory data, released late Wednesday afternoon, were down 520 short tons at 90,849 short tons.
In economic news, initial U.S. unemployment claims declined by 3,000 to 450,000 in the week ended Sept. 11, the Labor Department said in its weekly report Thursday. Economists had expected new claims would rise by 9,000.