Tokyo rubber futures, which set the tone for tyre grade prices fared better, after a drop in the yen pushed up the most active May contract to its highest in seven months at 284.9 yen a kg.
But worries about the health of the global economy and concerns about falling demand in main consumer China could cap gains. Rubber inventories in warehouses monitored by the Shanghai Futures are at their highest level in more than two years.
“I think it’s moving along with fluctuations in the yen. The fundamentals for rubber haven’t changed,” said Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore, adding that the next resistance level would be 300 yen.
The yen plunged to its lowest in over a year-and-a-half against the U.S. dollar as part of a broad skid after Japan’s conservative Liberal Democratic Party, which is committed to aggressive monetary easing, won a landslide victory.
Source: Reuters
