TOKYO: Benchmark Tokyo rubber futures ended down 0.7 percent on Monday, erasing earlier gains, as the dollar pulled back from a seven-year high, dealers said.
The dollar swung wildly against the yen on Monday, initially spiking to a seven-year high after data showed Japan’s economy unexpectedly slipped into recession before pulling down as the grim economic news sent Tokyo stocks tumbling.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, were awaiting the Asian rubber producers’ meeting on Thursday to look at more measures to push up prices, dealers said.
The Tokyo Commodity Exchange rubber contract for April delivery finished 1.4 yen lower at 203.7 yen ($1.75) per kg. The contract earlier rose as high as 208 yen, the highest since Aug. 4, after the dollar hit a new peak against the yen.
“The dollar failed to gain further, putting pressure on the overall market,” said a Tokyo-based broker. “Unless the yen weakens, new additional purchase of rubber does not kick in.”
The most-active rubber contract on the Shanghai futures exchange for January delivery fell 95 yuan to finish at 12,885 yuan ($2,104) per tonne.
The front-month rubber contract on Singapore’s SICOM exchange for December delivery last traded at 153.00 U.S. cents per kg, down 1.9 cent.
– Reuters
