TOKYO (Oct 16): Benchmark Tokyo rubber futures hit a one-week high on Monday but erased early gains to end lower by the close of the session, as the market came under pressure from a stronger yen against the dollar, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, on Monday got support from firm Shanghai futures, that hit their highest in 2½ weeks.
The US dollar was quoted around 111.65 yen, compared with about 112.12 yen on Friday afternoon. A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.
The Tokyo Commodity Exchange rubber contract for March delivery finished 0.7 yen lower at 201 yen (US$1.80) per kg. Earlier in the session, it touched 204.2 yen, the highest since Oct 10.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 75 yuan to finish at 13,580 yuan (US$2,063) per tonne helped by a surprisingly strong central bank economic growth projection.
Central bank governor Zhou Xiaochuan said the economy was expected to grow 7% in the second-half of this year, accelerating from the first six months and defying widespread expectations for a slowdown.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 144.70 US cents per kg, down 1.4 cents.
(US$1 = 6.5822 Chinese yuan)
(US$1 = 111.7800 yen)
