Rubber Futures Advance as Yen Weakens on U.S. Stimulus OutlookSupunnabul Suwannakij
Rubber gained as a weaker Japanese currency boosted the appeal of yen-denominated futures after U.S. economic data raised speculation the Federal Reserve will soon seek to reduce stimulus.
The contract for delivery in January advanced 1.7 percent to end at 249.9 yen a kilogram ($2,540 a metric ton) on the Tokyo Commodity Exchange. The gain pared losses to 17 percent this year.
The yen declined after climbing to 97.84 yen against the dollar earlier. It has weakened 12 percent this year, increasing the appeal of yen-denominated commodity used in tires. Federal Reserve Bank of Dallas President Richard Fisher said yesterday the central bank is closer to slowing bond purchases.
“The rubber market erased losses after yen weakened,” said Naohiro Niimura, a partner at research company Market Risk Advisory Co. in Tokyo. “Nikkei also rebounded, that means speculative players have bought rubber as well.” The Nikkei 225 Stock Average climbed 1 percent to 14,401.06.
Rubber for delivery in January climbed 0.7 percent to close at 18,400 yuan ($3,006) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board fell 0.7 percent to 76.75 baht ($2.44) a kilogram today, according to the Rubber Research Institute of Thailand.