Rubber is heading for the first weekly climb in three as optimism grew that U.S. lawmakers will lift the debt ceiling to avert a default, weakening Japan’s currency and boosting the appeal of yen-based futures.
The contract for March delivery rose as much as 2.7 percent to 266.3 yen a kilogram ($2,709 a metric ton) on the Tokyo Commodity Exchange, the highest level since Oct. 1. Futures traded at 265.5 yen at 10:17 a.m. and gained 4.4 percent this week, the first rally since five days through Sept. 20.
The yen dropped to 98.37 per dollar, the lowest level this month. Talks between Republican lawmakers and President Barack Obama will continue as they try to seek a “path forward” on the debt ceiling, according to Republican House Majority Leader Eric Cantor. The White House said “no specific determination was made” during an initial 90-minute meeting between the parties in Washington.
“Optimism that the U.S. will avert a default spurred investors to buy back riskier assets,” saidKazuhiko Saito, an analyst at broker Fujitomi Co. “A weaker yen is another support to futures in Tokyo.”
Rubber for January delivery on the Shanghai Futures Exchange rose 0.7 percent to 20,450 yuan($3,344) a ton yesterday. Thai rubber free-on-board fell 0.3 percent to 79.25 baht ($2.52) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Source: Bloomberg
