TOKYO, March 22 (Reuters) – Benchmark TOCOM rubber futures edged higher in thin trade on Tuesday to hover near a two-week high hit in the previous session, with the U.S.dollar strengthening against the yen on hawkish commentary from several Federal Reserve officials.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
FUNDAMENTALS
The Tokyo Commodity Exchange rubber contract for August delivery JRUc6 0#2JRU: was up 1.6 yen, or 0.9 percent, at 180.5 yen ($1.61) per kg at 0034 GMT. It rose nearly 6 percent last week, on Friday touching its highest since March 7 at 181.5 yen. RUB/T
Japanese markets were closed on Monday for a national holiday.
The United States may be in line for an interest rate hike as soon as April, Atlanta Fed President Dennis Lockhart said on Monday, another sign that policymakers are comfortable allowing U.S.monetary policy to diverge from other major economies.
China’s imports of natural rubber fell 21.35 percent in February to 139,376 tonnes.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.9 percent from the prior Friday, the bourse said on Friday.
MARKET NEWS
The U.S. dollar popped back above 112.00 yen JPY= , recovering from a 16-1/2 month trough of 110.67 plumbed last week. FRX/
Japan’s benchmark Nikkei stock average (XC0009692440) climbed about 2 percent in Tuesday trade, buoyed by the weaker yen. MKTS/GLOB
Oil prices rose about 1 percent on Monday after data showed crude inventories at the Cushing, Oklahoma delivery hub for U.S. futures fell for the first time since January, and ahead of the expiration of the U.S.front-month contract.
DATA/EVENTS (GMT)
The following data is expected on Tuesday: (Time in GMT)
0830 Germany Markit manufacturing flash PMI Mar
0830 Germany Markit service flash PMI Mar
0900 Germany Ifo business climate Mar
0900 Euro zone Markit manufacturing flash PMI Mar
0900 Euro zone Markit service flash PMI Mar
1000 Germany ZEW economic sentiment Mar
1300 U.S. Monthly home price index Jan
($1 = 112.1000 yen)
(Reporting by Yuka Obayashi; Editing by Joseph Radford)
