Rubber prices are depressed in the red zone in trading this afternoon, Friday (16/3/2018), amid pressure from the strengthening of the yen.
The price of rubber for delivery in August 2018 at Tokyo Commodity Exchange (Tocom), was observed down 1.79% or 3.50 points to 191.70 yen per kilogram (kg) at 11:07 pm.
Previously, rubber prices opened up 0.05% or 0.1 point to 195.30 yen per kg, after yesterday's trade closed up 0.26% or 0.5 points at 195.2.
According to analysts at Sunward Trading broker Hideshi Matsunaga, the stronger yen against the US dollar and rising rubber stocks in China put pressure on commodity prices.
China's rubber reserves monitored by the Shanghai Futures Exchange rose 0.2% or 437.896 tons last week. The Japan Rubber Trading Association recorded that rubber inventories increased 2.2% to 15,206 metric tons.
"The current investor focus is on the decision of the rubber exporter whether to extend the export restriction policy before it expires at the end of March," Matsunaga said, as quoted by Bloomberg.
Meanwhile, the three largest rubber exporting countries, Thaliand, Indonesia and Malaysia, will meet after the export restriction policy ends on March 21 to decide whether the policy will continue.
Earlier, Thailand Rubber Authority Governor Titus Suksaard said the country's rubber export restrictions had proceeded as planned.
The yen exchange rate is currently up 0.42% or 0.45 points to the level of 105.89 per US dollar at 11:27 pm.
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