Benchmark Tokyo rubber futures ended up 0.9 percent on Thursday, erasing early losses on the back of a weaker yen against the dollar. Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, still traded not far from near a one-month low hit on Tuesday amid lingering worries over demand in top consumer China.
The most-active rubber contract on the Shanghai futures exchange for September delivery fell 95 yuan to finish at 11,800 yuan per tonne. The front-month rubber contract on Singapore's SICOM exchange for June delivery last traded at 146.90 US cents per kg, up 0.1 cent. "The dollar has surged against the yen during the day and has lent support to TOCOM," said a source with a Tokyo-based broker. The Tokyo Commodity Exchange rubber contract for October delivery finished 1.7 yen higher at 182.9 yen per kg. The yen fell on Thursday as investors sold the currency amid speculation that the Bank of Japan could decide to expand its monetary stimulus as soon as next month.
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