TOKYO (June 5): Benchmark Tokyo rubber futures fell for a fifth straight session on Monday after earlier hitting a seven-month low as the yen rose against the dollar, making Japanese currency-denominated assets more expensive when purchased in other currencies.
The Tokyo Commodity Exchange rubber contract for November delivery finished 2.5 yen lower at 191.5 yen (US$1.73) per kg, after touching a seven-month low of 186.5 yen earlier.
The dollar added 0.2% against the yen to 110.57 after brushing a two-week low of 110.25 earlier in the session.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, have also come under pressure from sluggish Shanghai futures, brokers said.
The most-active rubber contract on the Shanghai futures exchange for September delivery extended a recent low on Monday, before ending 0.4% higher at 12,530 yuan per tonne.
Shanghai rubber narrowed losses in the afternoon after global oil prices rose more than 1%, pushed up by tensions in the Middle East where top crude exporter Saudi Arabia and other Arab states cut off ties with Qatar.
The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 144.50 US cents per kg, up 0.4 US cent.
(US$1 = 110.4600 yen)
