(Updates prices, adds details and quotes)<\/p>\n
HANOI, June 21 (Reuters) – Copper prices dropped to their lowest in nearly 10 weeks on Monday, as the dollar strengthened amid prospects of sooner-than-expected U.S. policy tightening, making greenback-priced metals more expensive to holders of other currencies.<\/p>\n
Three-month copper on the London Metal Exchange fell to its lowest since April 15, following an 8.6% drop last week, the biggest weekly fall since March 2020.<\/p>\n
The most-traded July copper contract on the Shanghai Futures Exchange shed as much as 2% to its lowest since April 14 of 66,480 yuan ($10,277.98) a tonne.<\/p>\n
The dollar held near multi-month peaks against other major currencies, after the U.S. Federal Reserve signalled it would raise interest rates and end emergency bond-buying sooner than expected.<\/p>\n
\u201cThe headwinds coming from a stronger USD and further measures such as the release of metal from strategic Chinese reserves are likely to keep downward pressure on the base metals sector,\u201d said ANZ analysts in a note, referring to a Chinese state sale plan announced last week.<\/p>\n
\u201cThis is likely to test the nerve of bullish investors, who had been banking on new growth sectors driven by the acceleration of the decarbonisation trend,\u201d analysts said.<\/p>\n
* Last month, China\u2019s copper exports rose to their highest level since March 2020 due to higher international prices.<\/p>\n