By Jae Hur Nov. 27 (Bloomberg) -- Copper dropped in Shanghai, extending a retreat from the highest level in more than 14 months, on speculation rising stockpiles, tumbling equities and a rebound in the dollar may signal slower demand for the metal. Asian equities fell, tracking European stocks that plunged the most in seven months yesterday on concern Dubai’s proposal to delay debt payments may trigger the biggest sovereign default since 2001. Copper inventories in warehouses monitored by the London Metal Exchange rose to the highest level since April 23 yesterday. The Dollar Index of the greenback against six currencies rallied from a 15-month low. “A rebound in the dollar sent copper prices lower,” said Cai Luoyi, an analyst at China International Futures (Shanghai) Co. “There’s a consensus in the market that over the long run the dollar will trend lower, and copper prices will continue to rise on expectations of a weaker dollar, inflation and rising demand.” February-delivery copper on the Shanghai Futures Exchange lost as much as 2.4 percent to 54,000 yuan ($7,909) a ton and was at 54,360 yuan as of 10:12 a.m. local time. The price touched 55,900 yuan yesterday, the highest intraday level since Sept. 12, 2008. Copper for delivery in three months on the London Metal Exchange gained 0.3 percent to $6,843 a ton. The metal fell 2.4 percent yesterday after touching $7,060 a ton, the highest since Sept. 24 last year. ‘High Stockpiles’ “High stockpiles is the main reason slowing the pace of copper’s rise,” Cai said. The Dollar Index rallied as much as 1 percent yesterday after touching 74.170, reducing the appeal for commodities as an alternative investment. It was up 0.4 percent at 75.064 by 10:15 a.m. Crude oil was down 2.2 percent at $76.22 a barrel. Among other LME-traded metals, aluminum added 0.3 percent to $2,015 a ton, lead increased 0.9 percent to $2,360 a ton, and nickel was 0.2 percent down at $16,550 a ton. Zinc fell 0.3 percent to $2,250 a ton, and tin hadn’t traded as of 9:34 a.m. in Singapore. To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net

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