Oct 4 (Reuters) - Copper prices fell to their lowest in more than four months on Wednesday, as a firm dollar and rising inventories in exchange warehouses weighed.

Three-month copper on the London Metal Exchange (LME) was down 0.9% at $7,933 a metric ton by 0703 GMT after dropping to $7,924.50 earlier in the session, its lowest since May 25.

The dollar hovered near an 11-month high on unexpectedly upbeat U.S. job openings data in August, making greenback-priced metals more expensive to holders of other currencies.

The jobs data also increased the prospect for higher-for-longer rates and boosted the yields on 10-year and 30-year U.S. government bonds to their highest since 2007.

"These rates are another reason that some of the metals such as copper are seeing huge contango rates," said Malcolm Freeman, a director at UK brokerage firm Kingdom Futures in a note.

"Nobody wants to finance the cash and carry as the risk is generally deemed too high."

The discount of LME cash copper to the three-month contract was at $70 a ton, hovering near its 31-year wide level of $77.50 hit on Tuesday, as on-warrant inventory in LME warehouses of 166,475 tons were at their highest in two years.

The discount of LME cash nickel to the three-month contract expanded to $277.50 a ton on Tuesday, the widest since Aug. 15, after inventories in LME warehouses rose 14% in September alone.

The

surplus

in the global nickel market is expected to widen to 239,000 tons in 2024 from 223,000 tons this year, the International Nickel Study Group said.

LME aluminium fell 0.4% to $2,282 a ton, nickel rose 0.2% to $18,770, while zinc edged up 0.1% at $2,505.50, lead declined 0.3% to $2,112 and tin increased 0.2% to $23,890.

For the top stories in metals and other news, click or (Reporting by Mai Nguyen in Hanoi; Editing by Sonia Cheema and Varun H K)