Key Tokyo rubber futures fell on Monday as the yen's extended gains against the dollar hurt buyer appetite. The benchmark Tokyo Commodity Exchange rubber futures contract for March delivery, which debuted on Friday, stood at 194.6 yen per kg at 0058 GMT, down 3.0 yen or 1.5 percent from Friday's close.
The dollar fell to its lowest in nearly eight months against the yen on Monday as investors unwound short yen positions and the likelihood of Japanese intervention receded. A rise in the yen deflates yen-based TOCOM futures prices. Oil prices rose toward $67 a barrel on Monday amid escalating tensions around Iran's nuclear programme and a weaker US dollar. Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 7 percent in the week ending on Thursday.
G20 leaders promised last week to rebalance world growth, and upcoming data will show that it is already happening, although not for the reasons they want. While the world's economic leaders would prefer the rebalancing come as a result of strengthening economices around the globe, it's primarily due to the weakness of the US rebound. A monthly US employment report is due on Friday.
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