Japanese rubber futures rose for a third consecutive session on Friday, as the yen languished slightly above the closely watched 150/dollar level.
The Osaka Exchange (OSE) rubber contract for April delivery was up 0.4 yen, or 0.2%, at 259 yen ($1.72) per kg as of 0200 GMT. The benchmark contract has gained 0.2% so far in the week, after two consecutive weeks of losses.
The rubber contract on the Shanghai futures exchange (SHFE) for January delivery was up 100 yuan, or 0.7%, at 14,295 yuan ($1,953.24) per metric ton.
The Japanese yen was trading at 150.41 per dollar, keeping traders nervy and looking for signs of intervention from Japanese authorities. The yen has had a whirlwind week, touching a one-year low against the dollar and 15-year low against the euro on Tuesday after the Bank of Japan tweaked its yield curve control policy.
A weaker Japanese currency makes yen-denominated assets more affordable for buyers holding foreign currency. China’s services activity expanded at a slightly faster pace in October, a private-sector survey showed, with sales growing at the softest rate in 10 months and employment stagnating as business confidence waned.
Oil prices were little changed, heading for their second straight week of losses as the US central bank left the door open for possible future rate hikes and worries that the Middle East conflict would disrupt supply eased.
Natural rubber often takes direction from crude oil prices as it competes for market share with synthetic rubber, which is made from crude oil.
The front-month rubber contract on Singapore Exchange’s SICOM platform for December delivery last traded at 146.9 US cents per kg, up 0.8%.
Read more at Business Recorder