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Thursday, January 20, 2022

Tokyo rubber futures hits 10-day low after yen’s jump

TOKYO, June 6 (Reuters) – Benchmark TOCOM rubber futures slid to a 10-day low on Monday, weighed down by a sharp gain in the yen against the U.S. dollar after a weak U.S. job data prompted investors to rule out the chance of a hike in U.S.interest rates this month.

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for November delivery JRUc6 0#2JRU: was down 0.8 yen, or 0.5 percent, at 157.1 yen ($1.47) per kg by 0103 GMT, after touching a low of 155.0 yen earlier, the lowest since May 25.

Rubber fell 2.6 percent last week, falling for a sixth week in a row, the longest losing streak since July last year. RUB/T

The U.S.economy created the fewest number of jobs in more than 5-1/2-years in May as manufacturing and construction employment fell sharply, which could make it harder for the Federal Reserve to raise interest rates.

Crude rubber inventories at Japanese ports stood at 14,920 tonnes as of May. 20, up 1.4 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Friday.

Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.2 percent from the prior Friday, the exchange said on Friday.

MARKET NEWS

The U.S. dollar slid to a one-month low of 106.35 JPY= against the yen, after a disappointing U.S. employment report prompted investors to rule out the chance of a hike in U.S.interest rates in June.

A stronger yen makes yen-denominated assets less affordable when purchased in other currencies. FRX/

Japan’s benchmark Nikkei stock average .N225 was down 1.4 percent in Monday trade on a jump in the yen. MKTS/GLOB

Oil prices tumbled more than 1 percent on Friday, extending losses after weekly industry data showed U.S.drillers added rigs for only the second time this year.

DATA/EVENTS (GMT)

The following data is expected on Monday: (Time in GMT)

0830 EZ Sentix Index

1400 US Employment trends

($1 = 106.6800 yen)

(Reporting by Yuka Obayashi; Editing by Richard Pullin)

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