TOKYO: Tocom rubber futures recorded a slight up trend on Thursday on weaker yen and after the U.S. Federal Reserve announced a new stimulus plan, its latest attempt to support the country’s struggling economy.
The key Tokyo Commodity Exchange rubber contract for May delivery was 0.3 yen at 272.3 yen as of 14.30 JST.
The benchmark contract rose as high as 274.1 yen, the highest since 275.5 hit on October. 5. Rubber has strengthened over the past month due to a weaker yen, which makes yen-denominated assets more affordable when purchased in other currencies.
The U.S. Federal Reserve on Wednesday committed to monthly purchases of $45 billion in Treasuries on top of the $40 billion per month in mortgage-backed bonds it started buying in September. It also said it will keep its near-zero interest-rate program in place until the U.S. unemployment rate falls to 6.5 percent from its current 7.7 percent.
India’s imports of natural rubber jumped 41 percent in November from a year earlier, to 22,748 tonnes, as lower overseas prices prompted tyre makers to turn abroad, the state-run Rubber Board said on Wednesday.
Source: Rubber Country
