Rubber price movements weakened in trading this morning, Thursday (11/1/2018), due to depressed effects appreciation of Japanese yen exchange rate.
The price of rubber for delivery in June 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), fell 0.48% or 1 point to as low as 206.40 yen per kilogram (kg) at 1040 GMT.
Earlier, the June contract price opened down 0.34% or 0.70 points at 206.70, after trading on Wednesday (10/1) ended up 0.73% at 207.40.
"The stronger yen is the biggest pressure on the rubber market in Tokyo," said Gu Jiong, a brokers analyst at Yutaka Shoji, as quoted by Bloomberg.
At the end of trading Wednesday (10/1), yen exchange rate movements ended up 1.21 points or 1.07% at 111.44 position per US dollar. The yen even reportedly touched 111.27 per dollar yesterday, the strongest level since Nov. 28.
Nevertheless, the yen exchange rate today observed weakened 0.25 points or 0.22% to 111.69 per US dollar at 10:49 pm, after it opened stagnant at 111.44 position.
As is known, the strengthening of the Japanese yen exchange rate against the US dollar makes the price of commodities traded in this currency to be relatively more expensive for overseas buyers. As a result, demand for these commodities has the potential to decline.
Meanwhile, the West Texas Intermediate oil price rally for delivery in February 2018 was observed stalled today, down 0.16% or 0.10 points to US $ 63.47 per barrel at 10:39 pm.
In late trading on Wednesday, West Texas Intermediate oil for February delivery gained 0.97 percent, or 0.61 points, at $ 63.57 a barrel on the New York Mercantile Exchange.
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