US dollar expected to be weak - positive trend in metals market

The US dollar index fell to a two-month low last week, down almost 2% over the week amid expectations that the dollar will continue to weaken in the short term following Joe Biden's victory in the US presidential election. Market participants said the move contributed to the movement in non-ferrous metal prices and would also provide support for rolled steel prices.

The US dollar index fell 1.9% last week, the biggest weekly drop since March. Market participants believed the dollar would remain weak in the short term, encouraging the development of dollar-denominated base metals such as nickel, zinc and aluminum and providing relatively favorable support for steel prices.