Rubber Gains as Yen Weakens After Euro Chiefs Reach Cyprus DealAya Takada
Rubber climbed as Cyprus reached an accord with creditors on a bailout and Japan’s currency weakened, boosting the appeal of the yen-denominated contracts.
The contract for delivery in August advanced 0.3 percent to settle at 279.4 yen a kilogram ($2,951 a metric ton) on the Tokyo Commodity Exchange. The gain pared losses to 7.6 percent this year.
The yen dropped to 94.96 per dollar as the accord between Cyprus and the “troika” representing international lenders was reached in overnight talks in Brussels and ratified by finance ministers from the 17-nation euro area. Cyprus dodged a disorderly default and unprecedented exit from the euro currency by bowing to demands to shrink its banking system in exchange for a 10 billion-euro bailout.
“The news about Cyprus eased concerns about the crisis, spurring investors to buy back the futures,” Kazuhiko Saito, an analyst at broker Fujitomi Co. in Tokyo, said by phone.
The contract for September delivery on the Shanghai Futures Exchange gained 0.5 percent to close at 22,910 yuan ($3,689) a ton. Natural-rubber inventories climbed 2,188 tons to 115,991 tons, the highest in about three years, the bourse said on March 22, based on a survey of nine warehouses in Shanghai, Shandong, Yunnan, Hainan and Tianjin.
Thai rubber free-on-board rose 0.4 percent to 86.50 baht ($2.96) a kilogram today, the Rubber Research Institute of Thailand said on its website.