Benchmark Tokyo rubber futures climbed on Friday, recovering from a one-month low hit the previous day, as investor unwound short positions ahead of the weekend and on a weaker yen against the dollar in early trade. The Tokyo Commodity Exchange (TOCOM) rubber contract for new July delivery finished at 205.1 yen ($1.88) per kg, up 1.3 yen, or 0.6 percent, from an opening price of 203.8 yen. The benchmark recorded a 2 percent drop for the week, marking its second straight weekly decline.
Rubber inventories in warehouses monitored by the Shanghai Futures Exchange rose 0.9 percent from last Friday, the exchange said. The most-active rubber contract on the Shanghai futures exchange for May delivery fell 40 yuan to finish at 13,770 yuan ($2,179) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for February delivery last traded at 151.2 US cents per kg, down 1.4 cents. The dollar traded above its recent lows against major rivals on Friday, having bounced after US President Donald Trump said he wanted a "strong dollar", contradicting earlier comments made by Treasury Secretary Steven Mnuchin.
A weaker yen makes yen-denominated assets more affordable when purchased in other currencies. "Lower yen in early trade prompted investors to cover short positions, but gains were capped due to lingering concerns over excess supply in Asia," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
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