Tokyo rubber futures edged lower on Friday, as steady oil prices and demand on the physical market lent support, but a firmer Japanese yen weighed, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange fell 0.5 yen to settle at 274.3 yen ($3.05) per kg.
The benchmark contract rebounded to an intraday high of 279.9 yen on speculative buying, supported by steady oil prices and strong demand on the physical market. Oil was steady near $74 on Friday, headed for a third consecutive weekly drop, as the recovery of the US economy has yet to boost fuel demand.
However, prices finally succumbed to stop-loss selling by investment funds after yen rose. The Japanese yen rose broadly on Friday as weaker US and European stock markets further clouded sentiment. Dealers said TOCOM rubber should rebound next week as concern on falling supply and demand from China ahead of the Lunar New Year should provide support.
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