
The U.S. dollar index failed to make a reversal after the much uninspiring Federal Reserve's latest policy meeting. After hitting its worst in 30 years, the currency could recover only a little ground on Wednesday, and that got reflected in LME aluminium price trend. The contract dipped marginally by 0.16 per cent to close at US$1,818 per tonne after Wednesday's night trading.
With uncertainty looming over Donald Trump's presidency, it is unlikely that the dollar index will recover soon. This will keep supporting commodity prices at their recent levels. The U.S. gasoline supplies, on the other side, are piling up, and while that might not help drivers much, it could be a negative for the price of oil, says CNBC. Based on the macroeconomic trends, LME aluminium is expected to hover in the range of US$1,815-US$1,825 per tonne in the short term.

As on February 1, LME official cash buyer price of aluminium stands at US$1,816.5 per tonne, cash seller & settlement price is US$1,818 per tonne, 3M buyer price is US$1,818 per tonne, 3M seller price is US$1,819 per tonne, Dec1 buyer price is US$1,858 per tonne, and Dec1 seller price is US$1,863 per tonne. The current LME official Opening Stock of aluminium is estimated at 2268875 tonnes, total Live Warrants is 1644975 tonnes, and Cancelled Warrant is 624925 tonnes.
{googleAdsense}
Asian shares surged while the dollar was capped on Thursday, February 2. In India, after presentation of the Union Budget 2017, rupee closed stronger against the dollar as fiscal deficit target was fixed at 3.2 per cent. The rise of the Indian curremcy against the U.S. dollar was 0.57 per cent, the maximum in eight months, on Wednesday. The strengthening of the currency saw aluminium price (along with other commodities) on Mumbai's Multi Commodity Exchange rising higher by 0.45 points (0.37 per cent).
Image Courtesy: www.moneycontrol.com
MCX aluminium is trading at INR 122.65 on Thursday. The contract opened at INR 122.40.
Responses







