Markets

Tokyo futures at 3-month low on Fed's warning

BANGKOK : Tokyo rubber futures tumbled 3.8 percent to the lowest in nearly three months on Thursday, tracking falls in

Published September 22, 2011 Updated September 22, 2011 12:50pm

1 min

By Imad Uddin

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The benchmark rubber contract on the Tokyo Commodity Exchange for February delivery fell 10.8 yen to settle at 342.5 yen ($4.48) per kg.

It fell as low as 3.8 percent to 340.0 yen, the lowest since June 28.

The most active rubber contract on the Shanghai commodity exchange for January delivery fell 1,660 yuan to finish at 30,400 yuan ($4,763) per tonne.

"Players sold contracts heavily due to fears of falling demand after the Fed warned of possible risks to the US economy," one dealer said.

The Federal Reserve warned on Wednesday of significant risks to the already weak US economy and launched a new plan to lower long-term borrowing costs and bolster the housing market.

Oil prices fell by more than $2 a barrel on Thursday on concern that measures announced by the Fed would be insufficient to boost growth, with US crude futures trading down at $83.88 a barrel.

Some dealers said TOCOM could rebound next week after prices found support at 340 yen per kg.

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