News: RIO METALS-Copper slides as dollar surges after Yellen signals looming rate hike

MANILA, Nov 18 (Reuters) - London copper futures dropped nearly 1 percent on Friday, as the dollar soared to a 13-1/2-year high against a basket of currencies after Federal Reserve Chair Janet Yellen signalled U.S. interest rates could rise "relatively soon."

FUNDAMENTALS

• Three-month copper on the London Metal Exchange CMCU3 was down 0.9 percent at $5,448 a tonne by 0130 GMT. The industrial metal has lost almost 10 percent since hitting a 17-month high above $6,000 on Nov. 11.
• The metal has dropped 1.8 percent this week, after surging more than 11 percent last week in its biggest such gain since October 2011 after a rally driven by hopes of increased U.S. infrastructure spending when Republican Donald Trump takes the helm of the world's top economy.
• The most-traded January copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.5 percent to 44,100 yuan ($6,415) a tonne.
• Trump's election as U.S. president has done nothing to change the Fed's plans for a rate increase "relatively soon," Fed Chair Janet Yellen said, if economic data keeps pointing to an improving labor market and rising inflation.
• That strengthened market expectations that the Fed could lift U.S. rates at its next meeting on Dec. 13-14, pushing the dollar to its highest since early 2003 versus a basket of major currencies <.DXY>
• A stronger dollar makes dollar-denominated commodities such as copper more costly for holders of other currencies.
• Global miner Anglo American said its Los Bronces copper mine in Chile is in the process of restarting normal operations after it halted activities there on Wednesday when protesters seized installations.
• The global nickel market shifted to a surplus of 2,800 tonnes in September from a deficit of 7,000 tonnes the previous month, the International Nickel Study Group said.
• The government of Guinea has called on Rio Tinto (RIO) to spell out what exactly it has discovered in an internal investigation into payments made to an adviser in Guinea who helped it secure ownership of the Simandou iron ore project.
• A copper mine collapsed in Turkey's southeastern town of Sirvan, killing at least four people, broadcaster CNN Turk reported, while at least another dozen people were trapped.

• For the top stories in metals and other news, click [TOP/MTL] or [MET/L]

  MARKETS NEWS

• Along with the dollar, U.S. bond yields rose, leaving Asian stocks vulnerable to potential rotation out of emerging markets to the United States. [MKTS/GLOB]
• Oil prices fell as the strengthening dollar dashed hopes that OPEC might agree production cuts. [O/R]

  DATA AHEAD (GMT) 0130 China House prices Oct 0700 Germany Producer prices Oct 0900 Euro zone Current account Sep 1500 U.S. Leading index Oct

  PRICES Three month LME copper CMCU3 Most active ShFE copper SCFcv1 Three month LME aluminium CMAL3 Most active ShFE aluminium SAFcv1 Three month LME zinc CMZN3 Most active ShFE zinc SZNcv1 Three month LME lead CMPB3 Most active ShFE lead SPBcv1 Three month LME nickel CMNI3 Most active ShFE nickel SNIcv1 Three month LME tin CMSN3 Most active ShFE tin SSNcv1 ($1 = 6.8750 Chinese yuan)