Copper prices fell the most in a week as the dollar strengthened on signals that the U.S. Federal Reserve is ready to tighten credit once the economy improves. The U.S. Dollar Index, a six-currency gauge of the greenback’s value, rose as much as 0.5 percent, making metals traded in dollars costlier for holders of other monies. The Fed is ready to move to be less accommodative, once the economy “has improved sufficiently,” Chairman Ben S. Bernanke said. “The dollar has been a key factor for a lot of commodities, especially copper,” said Michael K. Smith, the president of T&K Futures & Options in Port St. Lucie, Florida. “Any moves higher in the dollar hurt copper.” Copper futures for December delivery slid 6.5 cents, or 2.2 percent, to $2.8335 a pound at 11:48 a.m. on the New York Mercantile Exchange’s Comex unit. A close at that price would be the biggest decline for a most-active contract since Oct. 1. Before today, copper had gained 8.1 percent this week as the dollar weakened and gold prices climbed to a record, a sign that accelerating inflation remains a concern to investors. “All eyes are going to be on the dollar and the inflation threat,” said Matthew Zeman, a LaSalle Futures Group Inc. trader in Chicago. Copper for three-month delivery fell $110.25, or 1.7 percent, to $6,219.75 a metric ton ($2.82 a pound) on the London Metal Exchange. Inventories monitored by the LME fell to 346,600 tons, paring this week’s gain, the 13th straight increase. The world copper output surplus will rise next year from 2009 as demand slows, the Lisbon-based International Copper Study Group said yesterday. The gap between output and use will widen to 539,000 tons from an estimated 368,000 tons in 2009. Among other LME metals for three-month delivery, aluminum, nickel, lead, zinc and tin prices fell.

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