Tokyo rubber futures hit 10-month high on weaker Yen

Friday, 8 February 2013 01:12 - - {{hitsCtrl.values.hits}}

Reuters: Benchmark Tokyo rubber futures hit a 10-month high on Wednesday as a weaker yen and stronger shares helped spur further buying. The benchmark rubber contract on the Tokyo Commodity Exchange (TOCOM) for July delivery rose 2.5 yen, or 0.8 per cent, to settle at 334 yen ($ 3.58) per kg.

The contract jumped as high 337.8 on Wednesday, the highest since 339.5 hit on 28 March 2012.

The yen slumped to a 33-month low against the dollar and the euro on Wednesday as investors piled back into the easy one-way trade on view that a more dovish Bank of Japan governor will soon be installed to push through aggressive easing measures.

“A weaker yen is continuing and inviting new buying from ordinary investors and funds, but rubber itself has no special supportive factor,” said a Tokyo-based broker who declined to be identified. Tokyo rubber also got support after Japan’s Nikkei average surged 3.8 per cent to close at its highest since October 2008.

The most-active rubber contract on the Shanghai futures exchange for May delivery fell 130 yuan to finish at 26,655 yuan ($ 4,300) per ton. The front-month rubber contract on Singapore’s SICOM exchange for March delivery last traded at 311.50 US cents per kg, down 0.5 cents. ($ 1 = 93.3950 Japanese yen) ($ 1 = 6.2294 Chinese yuan)