Tokyo rubber futures ended one percent higher on Monday, hovering near a five-week high on the back of firm oil prices and a softer yen. But the market still lacked the momentum to rise significantly as gains were capped by profit-taking.
The benchmark rubber contract on the Tokyo Commodity Exchange for May delivery rose 2.9 yen, or 1 percent, to settle at 297.0 yen ($2.63) per kg. The key contract has risen about 28 percent from this year's low of 232.5 yen in August.
It rose as high as 297.2 yen, the highest since November 12, before profit-taking by day-traders set in. The dollar hit a two-month high against a basket of currencies on Monday, extending gains from last week after a surprisingly big rise in US consumer prices quelled some expectations of deeper Federal Reserve rate cuts.