SINGAPORE (Reuters) - London Metal Exchange copper rose for a second day on Tuesday, tracking small losses in the dollar to build on the previous session's 0.9 percent rise.
Much of Asia remained shut for Lunar New Year holidays, but turnover at 221 lots by 0334 GMT has already overtaken volumes in the entire Asian trading day on Monday.
Prices rose $37.50 to $6,907.50, off an early high of $6,930.
Currencies remain a key driver, with the collapse in the euro in the past few months making copper much more expensive for euro zone buyers than those in the United States.
The greenback fell 0.2 percent versus the euro on Tuesday to $1.3623, but remains about 10 percent stronger than lows in late November.
Since the end of September last year LME copper has risen around 15.5 percent in dollar terms, but in euro terms, the market is up 23 percent.
For a graphic showing comparative performance of copper priced in dollars and euros, click:
here
"Currencies are certainly affecting copper," said David Moore, commodities strategist at Commonwealth Bank in Sydney.
Nickel fell $100 to $19,250, snapping a six-session streak of gains. Prices have rallied more than 10 percent in the past week or so, while copper prices have risen 7 percent in the same period.
"It's hard to rationalise the 12 percent rise in the past week. Fundamentally, the market is likely to be characterised by surpluses for the next few years. In the nearer term, the rise in canceled warrants may be offering some support," Moore said.
"So at the moment we are seeing a bit of a recovery in nickel, but it does look vulnerable." Canceled nickel warrants at 5,388 tonnes represent 3.3 percent of the total stock, versus less than half a percent at the end of last year.
