Benchmark Tokyo rubber futures ended higher for the first time in four sessions on Thursday, getting support from a weaker yen against the dollar after the US Federal Reserve signalled its confidence about inflation and growth in the world's biggest economy.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, however, was not badly dented by rising inventories in high-consumer nations and sluggish Shanghai futures. The Tokyo Commodity Exchange rubber contract for July delivery finished 0.6 yen higher at 193.5 yen ($1.77) per kg.
Crude rubber inventories at Japanese ports stood at 13,307 tonnes as of Jan. 20, up 8.2 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Thursday. The most-active rubber contract on the Shanghai futures exchange for May delivery fell 220 yuan to finish at 12,955 yuan ($2,057) per tonne.
The new front-month rubber contract on Singapore's SICOM exchange for March delivery last traded at 147.60 US cents per kg, down 2 cents. The dollar edged up 0.2 percent to 109.55 yen, edging away from a four-month low of 108.280 plumbed on Friday. A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.

Copyright Reuters, 2018

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