Tokyo rubber futures plunged 1.9 percent on Tuesday as growing fears of a slowing pace of economic recovery lifted the yen, weighing on oil and stock prices in Asia and Europe. The benchmark rubber contract on the Tokyo Commodity Exchange for February delivery settled at 293.8 yen, down 5.7 yen, after rising for three consecutive days.
Some traders expect the market to slide further as tightness is easing on the prospect of increasing supply from producing countries. The yen rose towards a 15-year high against the dollar on Tuesday as traders looked to test Japanese authorities' resolve on intervention after the Bank of Japan's easing steps the previous day failed to scare investors from betting on it rising further. US crude futures fell $1 on Tuesday, extending losses for a second day, as expectations of higher crude inventories compounded concerns that a slowdown in global economic growth was hitting demand.
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