RTRS: India copper hits 11-month high on demand outlook
MUMBAI, Aug 14 (Reuters) - India copper futures hit its highest level in 11 months on Friday, supported by brightening economic scenario and demand outlook, along with a weak rupee, analysts said.
MCX copper on the continuous chart MCCc1 was 0.40 percent higher at 310.25 rupees per kg at 3:12 p.m., after hitting a high of 311.7 rupees, the loftiest level since October.
The Federal Reserve said the U.S. economy was showing signs of leveling out two years after the onset of the deepest financial crisis in decades and it moved to phase out one emergency measure. See [ID:nN1272730]
The Indian rupee eased as a choppy start to domestic share market failed to provide clarity on direction of foreign fund flows. A weak rupee makes the dollar-quoted asset expensive.
"The rally is due to Fed's endorsement of the market view about the economic recovery," said Gnanasekar Thiagarajan, director, Commtrendz Research in Mumbai.
"315-320 rupees would be a difficult area to breach for copper," added Thiagarajan.
"We expect copper to trade higher on economic recovery. We expect copper to breach 314 rupees level during the session," said Kapil Gandhi of STCI Commodities.
In other base metals, August zinc MZIQ9 was 0.72 percent higher at 91.20 rupees per kg, while lead for August delivery MLDQ9 was 0.55 percent higher at 92.10 rupees per kg.
(Reporting by Siddesh Mayenkar; Editing by Prem Udayabhanu)