Rubber drops on advancing yen
Rubber declined as Japan's currency strengthened and data signaled a slowdown in business activity in China and the United States, the world's biggest users.
- Published: 1/05/2013 at 02:53 PM
- Newspaper section: breakingnews
The contract for October delivery lost 1.1% to settle at 259.6 yen a kilogramme (US$2,664 a metric tonne) on the Tokyo Commodity Exchange. Futures fell for a third month in April and have dropped 14% this year.
The yen climbed to 97.05 per dollar, nearing a two-week high, after data showed US business activity shrank for the first time in more than three years. China's Purchasing Managers’ Index was at 50.6, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That compared with the 50.7 median forecast of 31 analysts in a Bloomberg News survey and a March reading of 50.9.
"Weak economic data recently has led to the yen's rebound and cut investor appetite for yen-based futures,” Kazuhiko Saito, an analyst at broker Fujitomi Co in Tokyo, said on Wednesday.
Crude rubber stockpiles held at Japanese warehouses rose 2% to 15,976 tonnes on April 20, according to the Rubber Trade Association of Japan.
Thai rubber free-on-board gained for a seventh session on Tuesday, rising 1.5% to 85.80 baht ($2.93) a kilogramme, according to the Rubber Research Institute of Thailand. Markets in China and Thailand are closed on Wednesday for public holidays.
About the author
- Writer: Bloomberg News
- Position: News agency