Tokyo futures rise for 3rd day on weak yen, producer group meeting

TOKYO, June 16 (Reuters) - Benchmark TOCOM rubber futures rose above the key 200-yen level on Friday, climbing for a third day and on track for a weekly gain amid a weaker yen and news that rubber producers will meet this weekend to discuss prices.

FUNDAMENTALS

* The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery was up 0.9 yen, or 0.5 percent, at 200.3 yen ($1.80) per kg as of 0035 GMT, recovering the 200-yen mark for the first time in two weeks. For the week, it was on track for a 7-percent gain, its first such rise in 4 weeks.

* The International Rubber Consortium (IRCo) will hold an internal meeting of its Committee on Strategic Market Operations this weekend in Indonesia to discuss falling rubber prices.

* The Bank of Japan is set to keep monetary policy steady on Friday and signal its confidence in a strengthening economy, as a tightening job market and solid global demand build a growing view that the recovery is gaining momentum.

MARKET NEWS

* The dollar rose to 110.97 yen, its highest against the Japanese currency since June 2, as solid readings on the U.S. economy helped strengthen the case for the Federal Reserve to continue tightening monetary policy this year. A weaker yen makes yen-denominated assets more affordable when purchased in other currencies.

* Oil prices settled lower for a second straight day on Thursday, as the market was unable to rebound from Wednesday's decline on the back of a surprise build in U.S. gasoline inventories and ongoing worries about heavy global supply.

* Japan's benchmark Nikkei stock average edged higher on Friday, supported by a weaker yen.