SINGAPORE: Japanese rubber futures extended declines on Friday, as market participants reacted to the rallying yen and discouraging economic data.
The Osaka Exchange (OSE) rubber contract for May delivery was down 3.1 yen, or 1.3%, at 237.5 yen ($1.65) per kg at closing. The benchmark contract lost 7.5% this week, recording its worst week in two-and-a-half years.
Meanwhile, the rubber contract on the Shanghai futures exchange (SHFE) for May delivery was up 345 yuan, or 2.6%, at 13,620 yuan ($1,903.19) per metric ton, recording its best day in two months.
Japan’s economy fell faster than first estimated in the third quarter, revised data showed on Friday. The yen extended its rally and is on track for its best week against the dollar in five months.
Bank of Japan (BOJ) governor Kazuo Ueda said on Thursday the central bank had several options on which interest rates to target once it pulls short-term borrowing costs out of negative territory, in a sign that the BOJ could soon phase out its ultra-loose monetary policy. Against the dollar, the yen held steady at 144.10.
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