Tokyo rubber gains as yen weakens
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Tokyo rubber futures rebounded on Thursday, closing up 2 per cent, boosted by a weaker yen and higher prices of commodities such as gold. The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery rose 5.2 yen, or 2 per cent, to end at 262.2 yen per kg. It rose to a session high at 262.9 yen, tracking rises in gold futures, which helped bolster technical sentiment. The benchmark rubber contract recovered from a nearly 3 per cent loss on Wednesday, supported by a weaker yen, which makes yen-based rubber futures expensive for Tokyo traders and encourages buying against further yen falls. The yen slipped from a three-month high against the dollar of 117.60 yen it hit on Wednesday to around 118.75 yen. On the physical front, rubber prices remained firm, with most grades of rubber unchanged despite the rise in TOCOM futures. Trading was thin, with most buyers on the sidelines waiting to buy at cheaper prices, traders said. Physical prices are unlikely to fall because of limited supply as rains hit producing countries, Thailand, Indonesia and Malaysia, traders said.
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Source : Business Line |
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