Aug. 16 (Bloomberg) -- Rubber advanced for a second week as the Japanese currency weakened and Thailand planned to support the rubber industry.
Rubber for delivery in January on the Tokyo Commodity Exchange settled 0.9 percent higher at 267 yen a kilogram ($2,734 a metric ton) and rose 2.3 percent this week. Futures have fallen 12 percent this year.
The yen reversed early gains against the greenback before reports forecast to show U.S. housing starts rebounded and consumer confidence increased to a six-year high. The Thai government planned to spend 30 billion baht ($960 million) to support farmers and rubber processors, Deputy Prime Minister Yukol Limlamthong said yesterday. It has no plan to sell state inventories, he said.
“The depreciation of yen and a rally on the Shanghai market helped boost gains in Tocom rubber,” said Ryuta Imazeki, an analyst at Okachi & Co. in Tokyo. “The news from Thailand is also supportive.”
Rubber for delivery in January rose 2.2 percent to 19,950 yuan ($3,264) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board was unchanged at 81 baht a kilogram today, according to the Rubber Research Institute of Thailand.
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