Tokyo rubber drops on weaker commodities prices

Benchmark Tokyo rubber futures dropped in thin trade on Tuesday after hitting a one-week high earlier, as weaker commodities prices following a surprise move to devalue the Chinese currency and slack car sales in top buyer China hurt sentiment. The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery finished 0.7 yen, or 0.4 percent, lower at 196 yen ($1.57) per kg. It earlier rose to a high of 200.8 yen, the highest since August 3.
China's central bank sharply weakened the yuan on Tuesday after recent poor economic data, saying it had changed the way it calculates the currency's daily midpoint against the dollar. Oil, copper and gold retreated on Tuesday as the dollar strengthened after China devalued the yuan to boost its economy, ending a brief rally in commodities that have wallowed near multi-year lows.