The U.S. dollar fell against the euro and other major global currencies on Tuesday, January 31, extending its year-to-date decline after Peter Navarro, the newly elected head economic policy advisor to President Donald Trump called Europe’s currency "grossly undervalued." The dollar nosedived to its lows buoying up LME aluminium prices which have been sliding downward over the last one week. The contract finally gained some strength and closed at US$1,821 per tonne after Tuesday's night trading, logging a marginal rise of 0.77 per cent from the previous day's closing of US$1,807 per tonne.
The ICE U.S. Dollar Index DXY +0.15 per cent, which had traded as high as 100.43 prior to Navarro's comments, fell 0.8 per cent to 99.62. LME aluminium is expected to find support at its current level from the falling dollar and trade within the range of US$1,820-1,840 per tonne in the short run.
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As on January 31, LME official cash buyer price of aluminium stands at US$1,819.5 per tonne, cash seller & settlement price is US$1,820.5 per tonne, 3M buyer price is US$1,820 per tonne, 3M seller price is US$1,821 per tonne, Dec1 buyer price is US$1,860 per tonne, and Dec1 seller price is US$1,865 per tonne. The current LME official Opening Stock of aluminium is estimated at 2273750 tonnes, total Live Warrants is 1639450 tonnes, and Cancelled Warrant is 629425 tonnes.
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LME aluminium premiums in the U.S. and East-Asia markets have increased by US$10 and US$5 respectively. As on January 30, LME Aluminium US Premium stands at US$200, LME Aluminium West-Europe Premium is US$80, LME Aluminium East-Asia Premium is US$95, and LME Aluminium South-East Asia Premium is US$15.
The markets in China, Hong Kong and Singapore remain closed for Lunar New Year Holiday. Trading here will resume on February 3.
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