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Dollar Weakness Offering Support To Base Metals—MF Globa

Dollar weakness has sparked some buying in base metals, says MF Global analyst Edward Meir. The euro rose early in the day as European leaders wrapped up a two-day summit by agreeing on a new rescue system for future debt crises, Meir notes. However, the euro did lose some of its earlier gains after Moody's downgraded Ireland's government bonds by five notches later in the day, and this triggered a pullback in metals from earlier highs. “Despite today’s firmer tone, we still would be cautious here, and would be looking to buy the dips,” Meir says. “Copper stocks now seem to be increasing, and were up another 600 (metric tons) today, bringing the weekly increase to just under 12,000 tons.” Weekly stocks on the Shanghai Futures Exchange also rose, he adds.