Metals fall on improving US job data

Copper prices fell on Friday as a much better-than-forecast U.S payrolls number strengthened the dollar at the expense of metals. Benchmark copper on the London Metal Exchange ended at $7,040 a tonne from $7,080 at the close on Thursday. Copper hit $7,170 earlier, a level not seen since Sept 23, 2008.

Data released showed U.S. employers cut a fewer than expected 11,000 jobs in November, the smallest decline since the start of the recession in December 2007, government data showed on Friday. But the dollar rose in part due to speculation that the Federal Reserve may soon have to consider raising interest rates. A stronger dollar makes dollar-priced metals more expensive for non-U.S. investors. As a sign that fundamentals remain weak, LME inventories climbed 675 tonnes to 446,075 tonnes, the highest since April.