By Chloe Fussell LONDON (Reuters) - Copper fell to an 11-week low on Thursday and aluminium to its cheapest in almost a month as a stronger dollar and mixed macroeconomic picture weighed on investor sentiment. Copper for three-month delivery on the London Metal Exchange was untraded in official rings, but bid $7,789 a tonne from $7,875 at the close on Wednesday. Earlier it dipped to $7,770, its lowest since March 20. "The stronger U.S. dollar is weighing on the market's mind, and that puts increasing downward pressure on prices," said Daniel Hynes, analyst at Merrill Lynch. "There's been a feeling that people are stepping back from the market until the macroeconomic picture is clearer." The dollar hit a three-month high versus the yen earlier on Thursday, boosted by the view U.S. interest rates have bottomed. Investors in industrial metals have been sensitive to moves in currency markets and news about the macroeconomic picture as a slowdown in major economies could mean less demand for metals. Lack of demand from China, where the market looks to take up the slack caused by the U.S. slowdown, has been dragging down prices. Slowing Chinese imports could be seen in inventory levels of copper, which have risen more than 15 percent since early May, currently at around 123,500 tonnes -- still only enough for a couple of days' global consumption. "Slow imports into China and a rise in LME stocks this week have tempered copper prices," said John Meyer, head of resources at UK-based Fairfax said in a research note. CHANGING ENVIRONMENT Aluminium traded at $2,875 a tonne, unchanged from Wednesday's close. It earlier touched $2,859 a tonne, its lowest price since May 8. Traders say the energy-intensive metal has slipped in recent days alongside oil prices, which are now about $13 a barrel below the record high of $135.09 a barrel hit on May 22. Energy accounts for about one-third of aluminium smelting costs and analysts say electricity prices are still high and would be a strong support over coming months. "A changing energy environment means a changing aluminium environment," Bernstein Research said in a note. "Aluminium production costs are heavily weighted to power and rising coal prices plus the continued strength in oil and gas will eventually impact marginal investment." Nickel gained to $22,800 a tonne compared with Wednesday's close at $22,750. "The price has hit a natural floor and there are some value buyers now looking for some upside," Hynes said. Prices have lost more than 11 percent this year, and more than halved from their record high in May last year. Tin was bid at $22,000 compared with $21,350/21,400 at Wednesday's close. One trader said he had seen renewed interest in tin after prices plummeted to 7-week low last week. Zinc traded at $1,955 a tonne from $1,985 at and lead down at $1,970 from $2,001 the previous day. | 
