* China to achieve 7.5 pct growth target this year - poll
* Dollar drops against euro and basket of currencies
* Coming up: G20 finance ministers meeting
By Harpreet Bhal
LONDON, July 19 Copper was steady on Friday,
propped up by a weak dollar and reassurance that the U.S.
Federal Reserve would be flexible in scaling back stimulus
measures, but capped by concern over demand.
Three-month copper on the London Metal Exchange
closed at $6,915 a tonne, not far from a last bid of $6,900 on
Copper prices drew support from Fed chairman Ben Bernanke's
testimony before Congress this week in which he reiterated that
the central bank would only start phasing out its stimulus once
it was sure the economy is strong enough to stand on its own.
The ultra-loose monetary policy adopted by central banks
around the world to boost growth in the last few years has
helped prices of commodities as an alternative to
interest-bearing investment assets.
"Although the market was reassured by Bernanke, there
remains a lot of question marks about the outlook for growth
from China," said Nic Brown, head of commodities research at
"Until the market gets more reassurance on that, there will
continue to be caution."
China will hit its growth target of 7.5 percent this year,
although it is unlikely to gain traction next year as the
government trades short-term growth for long-awaited reforms, a
Reuters poll showed.
"When you look at China, there's not really any indication
that you could see demand accelerating without fresh stimulus
which is unlikely to be the case. Given oversupply, we have to
consider copper prices falling back to $6,300 in the second
half," said Dominic Schnider of UBS Wealth Management in
The weaker dollar helped keep the metal in positive
territory, because it makes commodities priced in the U.S. unit
cheaper for holders of other currencies.
In other metals, nickel closed at $14,160 per tonne
from $14,000 at the close on Thursday, tin at $19,400
from $19,545, lead at $2,033 from $2,036.50, and
aluminium at $1,824 from from $1,805.
Zinc, untraded at the close, was last bid at $1,864.