TOKYO, April 8 (Reuters) – Benchmark TOCOM rubber futures fell to a one-week low on Friday after dropping for a third straight session, hit by selling after the yen surged against the U.S.dollar to a fresh 17-month high.
A stronger Japanese currency makes assets denominated in the yen less affordable when purchased in other currencies.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for September delivery JRUc6 0#2JRU: was down 3.5 yen, or 1.9 percent, at 176.6 yen ($1.63) per kg as of 0042 GMT. It earlier touched a low of 175.6 yen, the weakest since March 31. RUB/T
Japanese efforts to stem sharp increases in the yen could face increasing opposition from other major economies, making it even more difficult for Shinzo Abe’s administration to reflate the world’s third-largest economy out of stagnation.
MARKET NEWS
The U.S.dollar fell below 108 yen for the first time in 17 months on Thursday on bets the Bank of Japan will refrain from intervention.
The dollar fell as much as 1.6 percent to 107.71yen JPY= , its lowest since late October 2014. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) dipped 1.5 percent in early Friday trade, as the surging yen added to pressure. MKTS/GLOB
Oil settled lower on Thursday after data showed higher weekly inventories at the U.S.crude storage base despite a pipeline outage, but prices pared losses on short-covering, suggesting more volatility ahead.
DATA/EVENTS (GMT)
The following data is expected on Friday: (Time in GMT)
0600 Germany Trade data Feb
0645 France Industrial output Feb
0830 Britain Industrial output Feb
1400 U.S. Wholesale inventories Feb
($1 = 108.5700 yen)
(Reporting by Yuka Obayashi; Editing by Ed Davies) (([email protected]; +813-6441-1798; Reuters Messaging:[email protected]))
