TOCOM rubber posts 3-month closing low on strong yen

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, Oct 12 (Reuters) – extended declines into a fifth session on Thursday and posted their lowest close in three months due to a stronger yen against the dollar and a lack of fresh interests, brokers said.

The dollar hit a two-week low versus a basket of currencies after minutes from the U.S. Federal Reserve’s latest meeting suggested some central bankers are still concerned about persistently low inflation.

A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.

The Tokyo Commodity Exchange for March delivery finished 4.5 yen lower at 197.2 yen ($1.76) per kg after touching 195.1 yen earlier, the lowest since July 11.

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Shanghai futures, meanwhile, traded mostly lower during the day but managed to end higher after industry data showed strong vehicle sales an hour ahead of the close.

The most-active rubber contract on the Shanghai futures exchange for January delivery rose 155 yuan to finish at 13,375 yuan ($2,031) per tonne.

China’s sales rose in September for the fourth consecutive month, an industry body said on Thursday, underscoring growing momentum in the world’s largest auto market after a slower start to the year.

The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 143.20 U.S. cents per kg, up 1.8 cents.

($1 = 112.2600 yen)

($1 = 6.5841 Chinese yuan)

(Reporting by Osamu Tsukimori; Editing by Subhranshu Sahu)

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