TOKYO (June 6): Benchmark Tokyo rubber futures ended higher on Wednesday, edging up from a five-week low hit in the previous session, buoyed by a weaker yen against the greenback and as Shanghai futures recovered from early losses, dealers said.
“A yen’s slide and Shanghai recovery lent support,” said Jiong Gu, analyst, Yutaka Shoji Co.
The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery finished 0.9 yen higher at 188.1 yen (US$1.71) per kg.
The most-active rubber contract on the Shanghai futures exchange for September delivery ended 40 yuan lower at 11,620 yuan (US$1,817) per tonne, recovering from an intraday low of 11,550 yen.
The US currency gained against the yen to a two-week high above 110.00 yen in late Asia trade, compared with 109.83 yen in early trade. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
“We saw selling from short-term investors and buying from mid-term technical investors,” Gu said, adding that the market may stay mixed for a while.
The front-month rubber contract on Singapore’s SICOM exchange for July delivery last traded at 141.5 US cents per kg, up 0.1 cent.
(US$1 = 110.0500 yen)
(US$1 = 6.3959 Chinese yuan)
