BANGKOK, July 31 (Reuters) – Tokyo rubber futures rose for the second consecutive month on Thursday on the back of an easing yen and recent gains in equities, but weaker oil prevented prices from rising further, dealers said.
The Tokyo Commodity Exchange rubber contract for January delivery inched 0.8 yen higher to settle at 212.2 yen ($2.06)per kg.
“The falling yen encouraged investors to take speculative buying positions. However, TOCOM prices were still weighed by weak oil prices,” one dealer said.
The yen fell to a four-month low of 103.15 on Thursday, before steadying at 102.80 as the greenback was supported by upbeat U.S. growth data.
Brent crude slipped towards $106 a barrel on Thursday and was set to post its biggest monthly loss in more than a year as higher OPEC output and disappointing demand in the United States outweighed tensions in the Middle East and Africa.
Dealers said TOCOM prices were expected to rise further on Friday, after finishing above a major support of 210 yen. However, possible profit-taking ahead of the weekend could cap the gains.
The dollar stayed strong and U.S. bond yields held firm on Thursday after data showed solid U.S. economic growth, even as the Federal Reserve repeated its message that it is in no hurry to raise interest rates.
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 80 yuan to finish at 15,795 yuan ($2,600)per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for August delivery was last traded at 169.0 U.S. cents per kg.
($1 = 102.8600 Japanese Yen)
($1 = 6.1732 Chinese Yuan) (Reporting by Apornrath Phoonphongphiphat; Editing by Anupama Dwivedi)
– Reuters
