SHANGHAI: Japanese rubber futures fell for a sixth straight session on Friday, pressured by a stronger yen, and posted their steepest weekly decline since the week ended June 26.
The Osaka Exchange (OSE) rubber contract for February delivery was down 0.7 yen, or 0.16percent, at 428 yen (USD2.74) per kg.
The contract fell 3.3percent for the week. The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery fell 20 yuan, or 0.11percent, to 18,700 yuan (USD2,786.30) per metric ton.
The most-active October butadiene rubber contract on the SHFE lost 45 yuan, or 0.3percent, to 14,885 yuan per ton.
The yen turned lower against the US dollar on Friday after a two-day rally, but stayed on track for its strongest week in more than a month as traders raised bets on a Bank of Japan interest rate hike, while broader markets awaited US payrolls data.
A stronger Japanese currency makes yen-denominated assets less affordable to overseas buyers.
The El Niño weather phenomenon is set to strengthen further into 2027, raising risks of extreme weather into next year, the World Meteorological Organi-zation said on Thursday.
The development poses a longer-term supply risk for rubber-producing regions, analysts from Chinese broker Everbright Futures said in a note.
The front-month rubber contract on Singapore Exchange’s SICOM platform for November delivery last traded at 232.7 US cents per kg, up 0.5percent as of 0704 GMT.