Feb 4 (Reuters) – Copper prices rose on Friday, on course for a weekly gain, as a weaker U.S. dollar and low inventories provided strong support despite muted trading during a week-long holiday in top metals consumer China. Three-month copper on the London Metal Exchange (LME) was up 0.3% at $9,858 a tonne by 0807 GMT, putting it on track for a gain of more than 3% this week. The dollar index was set for its worst week in nearly two years as the euro tested highs not reached in almost three months, buoyed by Thursday’s hawkish comments from the European Central Bank. A softer U.S. currency makes dollar-denominated metals cheaper for buyers with other currencies. “As for LME inventories, the market continues to see outflows in major base metals, which has provided strong support,” ING commodities strategists said in a note. Copper inventories in LME-approved warehouses, at 82,400 tonnes, have fallen more than 60% from the 2021 peak scaled in August. (Reporting by Enrico Dela Cruz in Manila Editing by Sherry Jacob-Phillips and David Goodman)
