TOKYO, Aug 18 (Reuters) – Benchmark TOCOM rubber futures skidded to a one-week low on Thursday on a stronger yen, which surged against the dollar after minutes from the Federal Reserve’s July meeting reduced expecatations of a near-term U.S.rate hike.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for January delivery JRUc6 0#2JRU: was down 2.9 yen, or 1.8 percent, at 155.5 yen ($1.56) per kg as of 0055 GMT, after hitting a low of 154.8 yen, the lowest since Aug.12.
The Fed’s July meeting minutes released on Wednesday showed that Fed policymakers were generally upbeat about the U.S.economic outlook and labour market.
But they also said they wanted to “leave their policy options open” as a slowdown in the future pace of hiring would argue against near-term monetary tightening.
Japan’s exports tumbled in July at the fastest pace since the global financial crisis with a resurgent yen and weakness in overseas economies weighing on overseas shipments – a warning that Japan cannot rely on exports to drive growth.
MARKET NEWS
The U.S. dollar was down 0.5 percent at 99.79 yen JPY= early on Thursday, nearing a post-Brexit low of 99.55 hit on Tuesday. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) slid nearly one percent in Thursday trade, battered by a stronger yen. MKTS/GLOB
Oil’s rally extended for a fifth day on Wednesday, helped by a weaker dollar and an unexpected drawdown in U.S.crude and gasoline but traders said the run up may not last, pointing to galloping Saudi output and technical factors.
DATA/EVENTS (GMT)
The following data is expected on Thursday: (Time in GMT)
0130 China House prices Jul
0800 Euro zone Current account Jun
0830 Britain Retail sales Jul
1230 U.S. Weekly jobless claims
1230 U.S. Philly Fed business index Aug
1400 U.S. Leading index Jul
($1 = 99.7900 yen)
(Reporting by Yuka Obayashi; Editing by Richard Pullin)
