By Jae Hur Feb. 18 (Bloomberg) -- Copper declined for a second day as the dollar extended gains, reducing the appeal of the metal as an alternative investment. Three-month delivery copper on the London Metal Exchange dropped as much as 0.4 percent. The dollar gained against the euro as signs the U.S. economy is gaining momentum fueled speculation the Federal Reserve is moving closer to withdrawing stimulus measures and indications that the European Union may not bail out Greece. “The strengthening dollar and concern over Greece will outweigh positive economic data from the U.S.,” Hiroaki Hama, an analyst at Mizuho Corporate Bank Ltd. in Tokyo, said by phone. Copper in London lost 0.3 percent to $7,111 a metric ton at 11:44 a.m. Tokyo time. The metal dropped 0.2 percent yesterday after earlier climbing to $7,240, the highest level since Jan. 27. May-delivery copper fell 1.1 percent to $3.2245 a pound on the New York Mercantile Exchange, the first drop in three days. The dollar gained versus 12 of its 16 major counterparts before reports today that economists said will show an index of U.S. leading indicators increased for a 10th month and manufacturing in the Philadelphia area expanded. The euro fell after a political ally of German Chancellor Angela Merkel said yesterday that “not a single euro” should go to Greece to help the country cope with its fiscal deficit. The euro dropped as much as 0.4 percent against the dollar before trading at $1.3567. The currency has fallen about 10 percent against the dollar from a one-year high of $1.5144 in November on concern sovereign debt problems in Europe will hamper the region’s recovery. Zinc declined 0.7 percent to $2,285 a ton, extending yesterday’s 1.6 percent drop. Nickel lost 0.2 percent to $20,100 a ton and lead fell 0.4 percent to $2,280 a ton. Aluminum was little changed at $2,125 a ton and tin declined 0.3 percent to $16,700 a ton at 11:52 a.m. in Tokyo. To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net

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