Rubber extends gains as yen slides to lowest level in six months
ERJ staff report (TP)
Bangkok − Rubber climbed to a one-week high as a weaker Japanese currency boosted the appeal of yen-based contracts, reported Supunnabul Suwannakij for Bloomberg.
Futures for delivery in April on the Tokyo Commodity Exchange gained 0.3 percent to 260.7 yen (€1.89) a kg, the highest settlement since 18 November.
The yen weakened to 101.92 per dollar, the lowest level in almost six months, as demand for the safety of the Japanese currency waned after an accord was struck to set limits on Iran’s nuclear program.
“Rubber was supported by a weaker yen after the Iran nuclear agreement and on gains in equities markets,” said Vanessa Tan, an analyst at Phillip Futures.
Rubber for May delivery on the Shanghai Futures Exchange fell 1.3 percent to close at 18,850 yuan (€2,289) a tonne.
Thai rubber free-on-board added 0.3 percent to 79.10 baht (€1.83) a kg today (25 November), according to the Rubber Research Institute of Thailand. Prices were supported by limited supplies as heavy rains and flooding in the country’s southern provinces have disrupted tapping, it said.
This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
Full story from Bloomberg