TOKYO (Oct 16): Benchmark Tokyo rubber futures hit a one-week high on Monday but erased early gains to end lower by the close of the session, as the market came under pressure from a stronger yen against the dollar, brokers said.
The US dollar was quoted around 111.65 yen, compared with about 112.12 yen on Friday afternoon. A stronger yen makes Japanese currency-denominated assets more expensive when purchased in other currencies.
The most-active rubber contract on the Shanghai futures exchange for January delivery rose 75 yuan to finish at 13,580 yuan (US$2,063) per tonne helped by a surprisingly strong central bank economic growth projection.
Central bank governor Zhou Xiaochuan said the economy was expected to grow 7% in the second-half of this year, accelerating from the first six months and defying widespread expectations for a slowdown.
The front-month rubber contract on Singapore’s SICOM exchange for November delivery last traded at 144.70 US cents per kg, down 1.4 cents.
(US$1 = 6.5822 Chinese yuan)
(US$1 = 111.7800 yen)
The Tokyo Commodity Exchange rubber contract for March delivery finished 0.7 yen lower at 201 yen (US$1.80) per kg. Earlier in the session, it touched 204.2 yen, the highest since Oct 10.