Tokyo rubber ended slightly higher on Monday on the back of strong oil prices and an easing Japanese yen, but gains were limited by profit-taking, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery rose 2.4 yen to settle at 357.3 yen ($4.25) per kg.
The dollar rose to its highest in two months against the yen on Monday at above 84.18 yen. A weaker yen supports yen-priced TOCOM futures as it inflates their yen value. The Shanghai Futures Exchange said on Thursday it will raise margin requirements and widen daily price move limits on its contracts from next week. Traders said such a move could trigger liquidation of speculative positions.
The most active Shanghai rubber futures for May delivery rose 275 yuan to settle at 30,650 yuan per tonne on Monday. Dealers said TOCOM rubber could rise further on Tuesday after it finished above a key psychological level of 350 yen per kg and limited supply on the fundamental side should lend further support.
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