MUMBAI, Dec 16 (Reuters) - India copper futures edged higher on Wednesday helped by an early weakness in the rupee, but investors would be closely watching the Federal Reserve meeting for leads, analysts said. The most-traded February copper contract MCCG0 on the Multi Commodity Exchange (MCX) was trading 0.23 percent higher at 324.20 rupees per kg at 10:36 a.m.
The rupee edged lower in early trade on the back of the dollar's gains against major units, but a Moody's outlook upgrade for the local currency rating limited a further fall. [INR/]
"A weaker rupee may help copper in early trade, but market will be flat ahead of FOMC," said Aurobinda Prasad, head of research, Karvy Comtrade.
A weak rupee makes the dollar-quoted asset expensive.
The Fed is finishing a two-day policy meeting later in the day and is expected to keep very low interest rates to help the economic recovery. [ID:nN15216801]
"Buying could be initiated only on breach of 326, with a target of 330, and a stop loss of 324, rupees" said Prasad.
Copper may trade in the range of 318-326 rupees, said Kunal Shah of Nirmal Bang Commodities. In other base metals, zinc December MZIZ9 was 0.14 percent lower at 107.70 rupees per kg, while lead for December delivery MLDZ9 was 0.18 percent lower at 108.65 rupees. (Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)
