Rubber prices managed to regain momentum in trading this morning, Wednesday (25/10/2017), with a gain of more than one percent in line with the continued weakening Japanese yen exchange rate.
The price of rubber for delivery in March 2018, the most-active contract on the Tokyo Commodity Exchange (Tocom), rose 1.21% or 2.40 points to 200.70 yen per kilogram (kg) at 10,47 WIB.
Previously, rubber prices opened down 0.20% or 0.40 points at 197.90 level after trading on Tuesday (24/10) ended up 1.07% rebound at 198.30 level.
According to Kazuhiko Saito, an analyst at brokerage firm Fujitomi, the strengthening of rubber prices is supported by a number of factors including the depreciation of the yen against the US dollar.
"The weakening Japanese yen as well as concerns over supply limitations in Thailand because of heavy rainning boosted TOCOM's stock," he said, as quoted by Bloomberg.
The yen was down 0.03% or 0.03 point to 113.93 per US dollar at 10:57 pm, after losing on Tuesday (24/10) to 0.41% at 113.90.
The yen's performance has weakened about 2.3% last week and has declined the second weekly. Throughout the year, the yen has weakened by 24%.
At the same time, more torrential rainfall is expected to hit southern Thailand along with an active rainy season across the region.
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