GLOBAL MARKETS-Dollar hits 8-month high on rate expectations, metals drop
* Base metals prices fall again as dollar gains
* Pfizer set to buy Allergan for $160 bln
* Commodities index hits 13-year low before recovering (Updates to U.S. afternoon markets)
By Caroline Valetkevitch
NEW YORK, Nov 23 (Reuters) - The dollar rose to an eight-month high on Monday amid heightened expectations that the U.S. Federal Reserve would raise interest rates next month, driving down the prices of copper, gold and other metals.
Worries that a buoyant dollar could discourage producers from cutting supply despite weak demand weighed on base metals prices. Copper fell to its cheapest in six months before recovering, while London nickel slid to its lowest since 2003. Gold fell nearly one percent towards last week's near-six-year low.
"In the context of a market waiting for supply-side cuts, a stronger dollar is only going to weigh on the cost curve and constrain the pace at which cutbacks are made," said Nicholas Snowdon, analyst at Standard Chartered.
U.S. stocks fell slightly in afternoon trading, with utilities pressured by rate hike expectations.
The Dow Jones industrial average fell 60.49 points, or 0.34 percent, to 17,763.32, the S&P 500 lost 5.06 points, or 0.24 percent, to 2,084.11 and the Nasdaq Composite dropped 11.70 points, or 0.23 percent, to 5,093.22. Continuación...