SINGAPORE: Japanese rubber futures climbed on Tuesday, driven by the yen’s weakness against the US dollar and tight raw material supplies from top-producer Thailand.
The Osaka Exchange rubber contract for September delivery finished up 3.0 yen, or 1.1%, at 265.0 yen ($2.07) per kg. The dollar traded at 128.22 yen, against 126.63 yen on Monday afternoon in Asia. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.
The Japanese yen hit a 20-year low against the dollar on Tuesday, supported by higher US Treasury yields and comparatively good US economic data this week.
Heavy rain in many parts of Thailand limited raw material supply, which supported OSE prices, said a Singapore-based trader. Japan’s benchmark Nikkei share average was up 0.7% on Tuesday.
The rubber contract on the Shanghai futures exchange for September delivery rose 65 yuan to finish at 13,495 yuan ($2,116.93) per tonne, marking its biggest percentage rise since March 31.