SINGAPORE: Japanese rubber futures rose on Friday, supported by stronger Tokyo equities, although a firmer yen and inflationary pressures capped further gains.
The Osaka Exchange rubber contract for October delivery was up 1.3 yen, or 0.5%, at 245.8 yen ($1.92) per kg, as of 0114 GMT. The benchmark was headed for a 2% weekly gain.
The dollar traded at 127.77 yen, against 128.60 yen on Thursday afternoon in Asia. A firmer yen makes yen-denominated assets less affordable when purchased in other currencies. Japan’s core consumer inflation in April rose above the central bank’s 2% target, hitting a more than seven-year high as increases in energy and commodity costs are causing broader price hikes that are pressuring households.
The rubber contract on the Shanghai futures exchange for September delivery was up 190 yuan, or 1.5%, at 13,145 yuan ($1,959.45) per tonne. More Shanghai residents were given the freedom to go out to shop for groceries for the first time in nearly two months on Thursday as authorities set out more plans for exiting the city-wide COVID-19 lockdown more fully. The front-month rubber contract on Singapore Exchange’s SICOM platform for June delivery last traded at 163.4 US cents per kg, up 0.9%.
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