Key Tokyo rubber futures dropped nearly 3 percent on Friday, pressured by a firmer yen and falls in oil prices, erasing much of the previous day's gains. The benchmark rubber contract on the Tokyo Commodity Exchange for October delivery fell 7.2 yen or 2.7 percent to settle at 262.2 yen per kg.
The benchmark contract ended the week almost flat, after falling as low as 255.8 yen earlier in the week, the lowest for any benchmark since December 16. On Thursday, bargain-hunting, inspired by optimism about demand after gains in stock markets, helped the contract to rise 2.7 percent by the close, marking its biggest percentage gain in three weeks.
US crude oil tumbled to a three-month low below $74 on Friday on concerns that the European debt crisis would curb global growth and energy demand. The euro held within half a US cent of 14-month lows on Friday as concerns intensified that fiscal austerity measures in the eurozone would dampen a fragile recovery and spark social unrest. The dollar was steady around 92.70 yen, off a one-week high marked on Thursday.
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