Sept 21 (Reuters) -

Prices of most nonferrous metals fell on Thursday, weighed down by a firm dollar that makes greenback-priced metals more expensive to holders of other currencies, with copper and lead also pressured by higher inventories.

Three-month copper on the London Metal Exchange (LME) fell 0.6% to $8,299.50 per metric ton by 0321 GMT. The most-traded October copper contract on the Shanghai Futures Exchange eased 0.2% to 68,650 yuan ($9,403.59) per ton.

The dollar index rose to its strongest since March 9 after the U.S. Federal Reserve stiffened a hawkish monetary policy stance that its officials increasingly believe can succeed in lowering inflation without wrecking the economy or leading to large job losses.

Also suppressing copper prices were inventories in LME warehouses rising to 155,700 tons, the highest level since May 2022.

The LME cash copper contract was trading at a $64-a-ton discount to the three-month contract , the biggest discount since May 23, indicating abundant near-term supply.

Tightness in lead eased on the LME, with the cash-to-three trading at a $1 premium, down from $63 on Sept. 5, as lead inventories in LME warehouses leaped to 73,875 tons, the highest since July 2021.

LME aluminium declined 0.5% to $2,244.50 a ton, nickel dropped 0.9% to $19,420, zinc decreased 1.4% to $2,519, lead shed 0.5% to $2,202.50, and tin lost 0.3% to $26,065.

SHFE nickel dropped 3.3% to 158,090 yuan, lead lost 1.8% to 16,975 yuan, tin shed 0.5% to 220,830 yuan, while SHFE aluminium rose 1% to 19,430 yuan a ton and zinc advanced 0.4% to 21,735 yuan.

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DATA/EVENTS (GMT)

0645 France Business Climate Mfg, Overall Sept

1100 UK BOE Bank Rate Sept

1230 US Initial Jobless Clm Weekly

1230 US Philly Fed Business Indx Sept

1400 EU Consumer Confid. Flash Sept

1400 US Existing Home Sales Aug ($1 = 7.3004 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Varun H K)