MELBOURNE: Shanghai Futures Exchange copper trimmed losses to 0.2 percent at 37,820 yuan ($5,681) a tonne on Thursday as the dollar fell after the US Federal Reserve stopped short of signalling a near-term interest rate rise, spurring investors to buy hard assets such as commodities.

The Federal Reserve left interest rates unchanged on Wednesday but said near-term risks to the US economic outlook had diminished, opening the door to a resumption of monetary policy tightening this year.

“When I look at the length and breadth of the copper market given the stimulus that we’ve had, it goes up and then falls back again. If demand meets supply, what’s the impetus for prices to move higher?” said Chief Investment Officer Jonathan Barratt of Ayers Alliance in Sydney. “There isn’t one.”

China’s manufacturing sector struggled for growth in July, a Reuters poll showed, adding to expectations that Beijing will step up measures to boost growth in the world’s second-largest economy. A gauge of China’s factory health is due on Sunday.

The country’s rail freight volume fell 7.5 percent in the first half of 2016 from the same period a year earlier to 1.58 billion tonnes, the country’s top economic planner said on Thursday.

More stimulus boosts commodities because as hard assets, they retain their value as that of fiat currency depreciates, while cheaper capital helps to rein in financing costs.

The Philippines is the world’s top exporter of nickel ore, which would crimp supply to China, while the closure of nickel pig iron smelters than make a lower-quality nickel substitute for stainless steel suggests mills will feed in more refined nickel.

LME aluminium also climbed, up by 0.5 percent to $1,600 a tonne in generally low volume trade, curbed by summer holidays in the northern hemisphere.—Reuters