SHANGHAI, Mar. 21 (SMM) – The People's Bank of China announced on February 18th to raise the requirement reserve ratio by 0.5 percentage points from March 25th, to continue its tightening measures on inflation control. The move is expected to freeze RMB 360 billion. LME copper market dropped due to the news, down as low as USD 9,450/mt. Meanwhile, investors showed low risk appetite due to Japan's nuclear crisis. However, LME copper prices narrowed its daily losses after the US dollar index dropped to 75.5. Finally, LME copper prices closed USD 55/mt lower at USD 9,510/mt, a loss of about 7% from an all-time high of USD 10,190/mt seen in February.
During Monday's Asian trading hours, the US dollar index is expected to move between 75.5-75.8, and LME copper prices will fluctuate in the USD 9,450-9,600/mt range, and SHFE three-month copper contract prices will move between RMB 71,300-72,300/mt.
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