Tokyo rubber futures slipped lower on Monday on a strengthening yen and sluggish oil prices, but dealers said prices were unlikely to drop much further after finishing above the 285 yen level. The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery fell 1.8 yen to settle at 289.3 yen ($3.38) per kg.
It fell to an intra-day low of 287.6 yen before rebounding in the afternoon session on speculative buying, dealers said. "TOCOM was weighed down by a strong yen and weak oil prices, but I think TOCOM prices were still supported as prices did not drop below the key psychological level of 285 yen," a dealer said.
The US dollar held steady on Monday, retaining gains made late last week when growing worries about the global economy prompted investors to park funds in the world's most liquid currency, while the Australian dollar slid on political uncertainty.
The dollar eased 0.2 percent against the yen. Oil rebounded a few cents to top $74 on Monday, staying close to last week's six-week lows on a combination of lacklustre economic indicators, rising risk aversion and a lack of hurricane activity in the Gulf of Mexico.