Aug. 17 (Bloomberg) -- Copper prices in New York fell for the second day in a row as the dollar gained, boosting the metal's cost for buyers holding euros.

The dollar rose as an industry report showed investor confidence in Germany, the world's fourth-biggest copper consumer, declined more than forecast this month. Copper rose 4 percent on Friday as the dollar fell to a three-week low against the euro. The metal has climbed 65 percent in the past year after purchases rose in China, the biggest user of copper.

``The move on Friday was extraordinary, and now we're getting a break,'' said Scott Meyers, an analyst at Pioneer Trading Inc. in New York. ``When you look at the overall picture, every time we make new highs, the market tends to back off a little bit. I know the fundamentals are still positive.''

Copper futures for September delivery fell 0.8 cent, or 0.6 percent, to $1.3075 a pound on the Comex division of the New York Mercantile Exchange. A futures contract is an agreement to buy or sell a commodity at a specific price and date.

The ZEW Center for European Economic Research's index of institutional and analyst sentiment fell to 45.3 in August, compared with expectations for a decline to 48, the median forecast in a Bloomberg News survey.

Copper has declined 6.8 percent from an eight-year high of $1.403 a pound in March as mining companies including BHP Billiton, which owns the world's biggest copper mine, have boosted production.

Industrial metals such as copper ``have the highest risk of a downward correction, where increasing supply will catch up with demand,'' said Mark Pervan, senior resource analyst at Daiwa Securities SMBC in Melbourne.

To contact the reporter on this story: Claudia Carpenter in New York at ccarpenter2@bloomberg.net.

Last Updated: August 17, 2004 14:44 EDT