TOKYO: Japanese rubber futures edged higher on Tuesday as stronger oil prices helped boost investors' risk appetite while a weaker yen against the US dollar also lent support.
The Osaka Exchange rubber contract for June delivery was up 0.4 yen, or 0.2%, at 243.3 yen ($2.1) per kg, as of 0336 GMT.
Oil prices rose to a more than seven-year high on worries about possible supply disruptions after Yemen's Houthi group attacked the United Arab Emirates, escalating hostilities between the Iran-aligned group and a Saudi Arabian-led coalition.
The Bank of Japan upgraded its inflation forecasts and left unchanged a -0.1% target for short-term interest rates.
The dollar traded at 114.88 yen, against 114.48 yen in late Monday trade in Asia. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The rubber contract on the Shanghai futures exchange for May delivery was down 25 yuan, or 0.2%, at 14,880 yuan ($2,346) per tonne.
The front-month rubber contract on Singapore Exchange's SICOM platform for February delivery last traded at 180.4 US cents per kg, up 0.7%.
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