Copper slumps to two-month low, oil drops too

US copper futures tumbled to a two-month low on Tuesday, pressured by the soaring US dollar and concern about monetary tightening in top consumer China, while US oil pulled back from a 19-month high and gold dropped after hitting a five-month top. The 19-commodity Reuters/Jefferies CRB index settled down more than 2 per cent at a five-week low, marking its biggest one-day decline in three months. Raw sugar futures closed at a one-year low as investors rushed to liquidate long positions. The euro tumbled to a one-year low against the dollar on fears that aid for Greece may not prevent debt crises in other euro zone countries, prompting investors to seek shelter in the U.S. currency. The strong greenback typically pressures dollar-traded commodities, making them more expensive for investors holding other currencies. Copper slipped following news this week that China tightened its bank reserve requirement ratio by 50 basis points, its third increase of that magnitude this year. Benchmark copper on the London Metal Exchange closed at $7,030 a tonne in kerb trading from $7,430 on Friday, having earlier touched $6,998, its lowest since Feb. 25. Copper posted its biggest one-day percentage fall - about 5 per cent - since June 23, 2009, on the LME's electronic trading system Select.