METALS-Shanghai copper hits two-week high as dollar tumbles

June 26 (Reuters) - Shanghai copper prices reached a two-week high on Thursday as the dollar weakened to its lowest level in more than three years, lifting market sentiment.

The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.3% to 78,820 yuan ($10,995.79) per metric ton, its highest since June 11, as of 0132 GMT.

Three-month copper on the London Metal Exchange CMCU3 also added 0.3% to $9,737 a ton.

The dollar .DXY fell 0.1% to its lowest since March 2022 as concerns about the future independence of the U.S. Federal Reserve undermined faith in the soundness of the country's monetary policy.

A weaker dollar makes greenback-denominated assets more affordable to holders of other currencies. USD/

Premiums for nearby copper contracts on the London Metal Exchange (LME) have slid from multi-year highs on expectations that deliveries to LME-registered warehouses in the coming weeks will ease tightness.

Meanwhile, Goldman Sachs expects copper prices to rise in the second half of 2025 to an average of $9,890 per metric ton, the bank said, citing fears of a global supply squeeze driven by U.S. tariffs and increased activity in China.

On the geopolitical front, Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week and credited U.S. strikes on Iran with bringing a swift end to the war between Israel and Tehran.

LME aluminium CMAL3 added 0.2% to $2,567.5 a ton and SHFE aluminium SAFcv1 firmed 0.4% to 20,385 yuan.

LME zinc CMZN3 gained 0.3% to $2,711.5, lead CMPB3 grew 0.4% to $2,040 and nickel CMNI3 advanced 0.4% to $15,130.

SHFE lead SPBcv1 rose 0.6% to 17,200 yuan, nickel SNIcv1 climbed 1.4% to 119,530 yuan, tin SSNcv1 rose 1.7% to 266,700 yuan and zinc SZNcv1 moved 0.6% higher to 22,100 yuan.

($1 = 7.1682 Chinese yuan)