Rubber Rebounds From Five-Month Low as Weak Yen Boosts AppetiteSupunnabul Suwannakij
Rubber climbed the most in more than a week, recovering from a five-month low, as a weakening Japanese currency boosted investor demand for the commodity used in tires.
Rubber for delivery in September gained 3.3 percent to settle at 253.2 yen a kilogram ($2,555 a metric ton) on the Tokyo Commodity Exchange. That was the biggest gain at close for the most-active contract since April 8. Futures ended at 245.2 yen yesterday, the lowest since Nov. 13. Prices declined 8.4 percent this week.
The yen dropped against the dollar after Japanese Finance Minister Taro Aso said policies carried out as the currency dropped to a four-year low went unopposed at the Group of 20 meeting in Washington. G-20 finance ministers and central bankers complete two days of talks today. West Texas Intermediate crude rose for a second day, after advancing the most in three weeks yesterday. Crude oil is used to make synthetic rubber.
“The weakening yen supported rubber, which also tracked gains in other commodities,” said Gu Jiong, an analyst at commodity broker Yutaka Shoji Co. Optimism that the Bank of Japan may add more stimulus also improved market sentiment, he said by phone from Tokyo.
The BOJ meets on April 26 after pledging this month to double the monetary base in two years through expanded purchases of government bonds in a bid to end 15 years of deflation.
Rubber for September delivery on the Shanghai Futures Exchange gained 3.2 percent to close at 19,325 yuan ($3,127) a ton after falling by the bourse’s daily-price limit yesterday.
Thai rubber free-on-board dropped 0.6 percent to 79 baht ($2.76) a kilogram, the lowest since October 2009, according to Rubber Research Institute of Thailand data.