Copper steadies as dip in US$ offsets worries about demand

London

COPPER prices edged into positive territory on Friday as a slightly weaker US dollar balanced worries that a recent rally was overshooting the supply-demand fundamentals.

Most industrial metals fell earlier in the European session, but erased their losses as the US dollar slipped after downbeat US data. A weaker US dollar boosts the purchasing power of commodities buyers holding other currencies.

The US dollar came under pressure after US consumer sentiment fell more than expected in May and industrial output dropped for a fifth straight month in April. "The dollar is supportive, which is somewhat counter-intuitive. The dollar is down because the US economy is weak, which would be negative for metals. But bad news is good news, good for Fed to delay (a h…