Copper prices hit the lowest level in more than two months on Wednesday under pressure from a stronger dollar, concerns about current demand in top metals consumer China and rising stocks.

Benchmark copper on the London Metal Exchange (LME) fell 0.6% to $9,510 a metric ton by 1357 GMT after touching $9,509, its lowest since April 18. It has dropped 14% since speculative buying took prices to a record high of $11,104.5 on May 20.

The dollar index was up 0.3% after the dollar itself hit new 38-year high against the yen. A stronger U.S. currency makes dollar-priced commodities more expensive for buyers using other currencies. Spot gold prices fell 1%.

Signs of current weak demand in China weighed further on copper, used in power and construction.

"Copper rod or wire rod producers in China have increased production a little bit in June from April-May levels, but this growth has not been significant. It means that demand has not picked up much yet despite copper prices falling from recent highs," said Dan Smith, head of research at Amalgamated Metal Trading.

Copper stockpiles in the LME-registered warehouses kept on rising, with the daily LME data showing 2,700 tons of arrivals which boosted the stocks to 175,475 tonnes, the strongest in more than six months.

The discount for LME cash copper over the three-month contract was at a record high of $148.4.

However, tight copper mine supply may provide an upside to the metal in the second half of the year, BofA Securities said in a note.

"The base metals rally that started in January has been fading, repeating a pattern seen in the past two years: investors tend to drive prices up in Q1 and Q2, but as physical demand is slow to catch up, the industrial metals then give back some of the gains."

"That said, this year's fundamental backdrop is much stronger, so we believe the downside is ultimately limited," BofA added.

LME zinc rose 1.9% to $2,925, aluminium added 0.2% to $2,500.50, while lead fell 0.5% to $2,196.50, tin lost 1.4% to $31,815 and nickel was down 0.1% at $17,150.

(Reporting by Polina Devitt in London; editing by Vijay Kishore, Alexandra Hudson, Louise Heavens and Nick Zieminski)