Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rubber Books Third Weekly Gain on Speculation Yen to Extend Drop

Dec. 21 (Bloomberg) -- Rubber booked a third weekly gain in Tokyo amid speculation that the yen will drop further as Japan’s central bank may agree to double an inflation target after the election of a new government.

Rubber for delivery in May rose 0.6 percent to end at 284.5 yen a kilogram ($3,389 a metric ton) on the Tokyo Commodity Exchange, extending this week’s rally to 2.9 percent. A weaker Japanese currency can raise the appeal of yen-based contracts.

The yen traded near an almost 20-month low against the dollar after the Bank of Japan yesterday boosted monetary stimulus and agreed to review its 1 percent inflation target. Incoming Prime Minister Shinzo Abe asked Bank of Japan Governor Masaaki Shirakawa to agree to set a 2 percent target.

“Futures on Tocom were supported by speculation that the yen will drop further to below 100 per dollar on economic policies by the new government,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said by phone.

Gains in futures were limited after U.S. House Republican leaders canceled a planned vote that would permit higher taxes amid stalled budget talks, boosting concern automatic spending cuts and tax rises may start starting next month.

House Speaker John Boehner yielded to anti-tax resistance within his own party, throwing budget talks into turmoil. House members and senators won’t vote on budget issues until after Christmas, giving them less than a week to reach a deal to avert the tax increases and spending cuts known as the fiscal cliff.

Rubber for May delivery added 0.3 percent to 24,960 yuan ($4,006) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board was unchanged at 96.65 baht ($3.15) a kilogram today, according to the Rubber Research Institute of Thailand.

To contact the reporter on this story: Aya Takada in Tokyo at atakada2@bloomberg.net

To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.