TOKYO (Oct 20): Benchmark Tokyo rubber futures pared declines at the close on Friday, getting support from a broad dollar gain against the yen and a recovery in Shanghai futures, brokers said.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, had earlier fallen as much as 1.7%, reflecting sluggish Shanghai futures.
The dollar rose 0.5% on the day to 113.14 yen, having gained to as much as 113.315 yen at one point, its strongest level since Oct 6, bolstered by increased optimism about the prospects for US tax reforms.
A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.
The Tokyo Commodity Exchange rubber contract for March delivery finished 0.5 yen lower at 197.1 yen (US$1.74) per kg, declining more than 2% for the second straight week.
The contract touched an intraday low of 194.3 yen, slightly off a 3½-month low of 193.5 yen hit on Tuesday.
The most-active rubber contract on the Shanghai Futures Exchange for January delivery rose 130 yuan to finish at 13,700 yuan (US$2,070) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 143 US cents per kg, up 0.8 cent.
(US$1 = 113.2000 yen)
(US$1 = 6.6170 Chinese yuan)
