Rubber Futures Pare Gain as BOJ Keeps Policy Unchanged
(Corrects time reference in second paragraph.)
The contract for delivery in November rose as much as 3 percent, the biggest advance since May 10, to 254.4 yen a kilogram ($2,592 a metric ton) on the Tokyo Commodity Exchange and was at 248.7 at 12:25 p.m. local time. Futures have fallen 18 percent this year.
The Japanese currency strengthened against all of its major peers, reducing the appeal of yen-denominated contracts, as some investors had expected the central bank to introduce measures to stem volatility in the nation’s bonds. It refrained from extending the maturity of loans to banks.
“Investors are disappointed with the result of BOJ meeting, prompting them to reduce positions,” said Kazunori Kokubo, managing director Yutaka Shoji Singapore Pte.
The BOJ kept unchanged its plan for a 60 trillion yen to 70 trillion yen annual increase in the monetary base, the central bank said after a two-day meeting today. Twenty of 23 analysts in a Bloomberg News survey either forecast that the BOJ would approve two-year or longer loan operations at the policy meeting or said that such a move was possible.
The yen strengthened 0.6 percent to 98.22 per dollar from yesterday, when it depreciated 1.2 percent.
Thai rubber free-on-board remained unchanged at 87.40 baht ($2.83) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
The Shanghai Futures Exchange is closed for a public holiday.
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