Tokyo rubber futures ended higher on Friday on the back of firm oil prices and tight supply on the physical market, dealers said. The benchmark rubber contract on the Tokyo Commodity Exchange for September delivery rose 2.4 yen to settle at 324.6 yen ($3.48) per kg. The contract settled at 322.2 yen per kg on Thursday.
On Wednesday, it rose as high as 330.3 yen, the highest since August 2008. Oil rose towards $86 a barrel on Friday, after falling the two previous days, as the dollar eased against several major currencies, increasing the allure of commodities such as oil.
"Firm oil prices and falling physical supply should provide further support to TOCOM prices next week," one dealer said. The Thai government and traders said they expected the prices of benchmark Thai RSS3 to hit a record high of $4.0 per kg in April as raw material prices are likely to jump to a record of 120 baht per kg.