Tokyo rubber futures fell 1.5 percent on Wednesday due to the strength of the Japanese yen and weak oil prices, and were likely to drop further after falling below key support at 280 yen, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery fell 4.1 yen, or 1.5 percent, to settle at 277.8 yen ($3.26) per kg.
"The key factor that dragged TOCOM down was stop-loss selling, triggered by a rising yen," one dealer said. The dollar hovered within sight of a 15-year low versus the yen on Wednesday after the Federal Reserve announced plans to boost a flagging economy by reinvesting money from maturing mortgage bonds in government bonds.
Oil prices dipped on Wednesday on demand concerns after a rise in US crude imports overshadowed a deeper-than-expected decline in crude stocks, but the Federal Reserve's steps to support the economy provided support. Dealers said technical sentiment on TOCOM was weak and prices were expected to fall further on Thursday after prices settled below the key psychological level of 280 yen.
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