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Wednesday, October 27, 2021

Tokyo rubber futures fall under pressure from stronger yen

TOKYO, Sept 7 (Reuters) – Benchmark TOCOM rubber futures fell on Wednesday, pressured by a stronger yen against the U.S.dollar after disappointing economic data from the United States.

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

FUNDAMENTALS

The Tokyo Commodity Exchange rubber contract for February delivery JRUc6 0#2JRU: was down 2.8 yen, or 1.8 percent, at 155.6 yen ($1.53) per kg as of 0052 GMT, after snapping a three-day winning streak the previous session. RUB/T

The U.S.economy’s service sector expanded in August but at a slower pace than in July, and the fall from the previous month was the largest since the 2008 financial crisis, according to an industry report released on Tuesday.

Car makers in Brazil no longer need to trim production to clear inventories, the head of automaker group Anfavea said on Tuesday, after August data showed the slowest daily output since the January trough of the national industry’s crisis.

MARKET NEWS

The dollar was down 0.5 percent at 101.50 yen JPY= after dipping as low as 101.245 earlier, its lowest since Aug. 26, as weak economic data in the U.S.service sector dimmed expectations for a near-term interest rate increase by the Fed.

Japan’s benchmark Nikkei stock average .N225 edged down in Wednesday trade, hurt by a sharp gain in the yen.

Oil prices inched lower on Wednesday as market participants remained sceptical that producers will reach an agreement to freeze output to rein in a global supply glut.

DATA/EVENTS (GMT)

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

0600 Germany Industrial output Jul

0645 France Trade data Jul

0830 Britain Industrial output Jul

1400 U.S. JOLTS job openings Jul

($1 = 101.5500 yen)

(Reporting by Yuka Obayashi; Editing by Joseph Radford)

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