TOKYO, Aug 17 (Reuters) – Benchmark TOCOM rubber futures climbed in thin trade on Wednesday, helped by overnight gains in oil prices and a reverse in the yen after it hit a 7-week high against the U.S.dollar.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was up 1.8 yen, or 1.2 percent, at 158.9 yen ($1.58) per kg as of 0117 GMT.It ended lower the previous day after hitting a fresh 3-week high.
The Federal Reserve could possibly raise U.S.interest rates as soon as September, New York Fed President William Dudley said on Tuesday in comments that boosted the dollar ahead of next week’s signature meeting of world central bankers.
The U.S.economy is likely strong enough for at least one interest rate increase before the end of 2016, with two hikes a possibility, Atlanta Federal Reserve Bank President Dennis Lockhart said on Tuesday.
MARKET NEWS
Oil settled up nearly 2 percent on Tuesday, hitting 5-week highs as sources at OPEC spoke of Saudi Arabia’s desire for higher crude prices while Russia met the producer group to discuss the market, though oil prices slid on Wednesday on doubts over a successful outcome from producer talks. O/R
The U.S. dollar was quoted around 100.59 yen JPY= early on Wednesday, after falling more than 1.5 percent against the Japanese currency to 99.56 yen in an overnight trade following the hawkish comments from Fed officials. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) rose 0.6 percent in Wednesday trade, despite a drop in Wall Street shares from record highs. MKTS/GLOB
DATA/EVENTS (GMT)
The following data is expected on Wednesday: (Time in GMT)
1800 Minutes of the U.S. Federal Reserve’s July 26-27 meeting
($1 = 100.4900 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
