Rubber climbed as Japan’s currency slid to a four-month low against the dollar, boosting the appeal of yen-based futures, amid speculation the Bank of Japan may add stimulus.
The contract for delivery in April on the Tokyo Commodity Exchange gained as much as 1.6 percent to 262.4 yen a kilogram ($2,593 a metric ton), the highest level since Nov. 18, and traded at 261.8 yen at 10:45 a.m. local time. Futures are little changed this week.
The yen slid to 101.35 per dollar, the lowest level since July 8, and was poised for its longest stretch of weekly declines since February. BOJ Governor Haruhiko Kuroda said today he does not think the yen is excessively weak, and the bank will do the utmost to restrict long-term yield gains.
“Speculation is growing that the BOJ may add stimulus to sustain growth and achieve its inflation goal, leading to sales of the yen and purchases of futures in Tokyo,” said Takaki Shigemoto, an analyst at research company JSC Corp.
Rubber for May delivery on the Shanghai Futures Exchange added 1 percent to 19,380 yuan($3,180) a ton. Thai rubber free-on-board was unchanged at 78.60 baht ($2.47) a kilogram yesterday, according to the Rubber Research Institute of Thailand.
Source: Bloomberg
