Rubber was poised for the first monthly gain in six as a weakening Japanese currency improved the appeal of yen-denominated contracts.
The contract for delivery in January rose as much as 2.4 percent to 246.4 yen a kilogram ($2,512 a metric ton) on the Tokyo Commodity Exchange and was at 242.5 yen at 11:48 a.m. Futures have gained 3.1 percent this month, paring losses this year to 20 percent.
The yen weakened to 98.22 per dollar, heading for its first drop in four days, as Asian stocks rebounded, offsetting a bigger-than-estimated decline in Japanese factory output. The Bloomberg U.S. Dollar Index headed for its biggest monthly decline in more than a year before a two-day Federal Open Market Committee meeting begins.
“Rubber rebounded on the weaker yen ahead of the FOMC meeting,” said Gu Jiong, an analyst at commodity broker Yutaka Shoji Co. Lower-than-expected data from Japan raised optimism that the government may increase stimulus, he added.
Rubber for January delivery added 0.3 percent to 17,670 yuan ($2,880) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board fell 1.3 percent to 78 baht ($2.49) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Source: Bloomberg
