Rubber prices rebounded and ended higher in trading today, Wednesday (25/4/2018), amid the depreciation of the yen against the US dollar.
The price of rubber for delivery in September 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 0.48% or 0.90 points at 188.80 yen per kilogram (kg), reversing the weakening experienced in the previous trading session.
Rubber starts to rebound as it opens in the green zone with a 0.05% rise or 0.10 point at 188 this morning. In trading Tuesday (24/4), the price of this commodity ended down 0.48% at the level of 187.90 points.
According to Naohiro Niimura, a partner at Market Risk Advisory research firm, the weakening yen boosted buying action against rubber.
The yen today tracked down 0.31% or 0.34 points to 109.15 per dollar at 13:56 pm, after ending depreciating 0.09% at 108.81 yesterday. Thus, the yen has weakened for the sixth straight day.
As is known, the movement of rubber prices is usually inversely proportional to the yen. Yen breaking gives fresh air for rubber and can lift the price of this commodity with the potential increase of demand from buyer.
"The level of US consumer confidence is better than expectations also provide support. Nevertheless, the strengthening of [rubber price] is limited by the weakness of equity that triggers the sale, "Niimura continued, as quoted by Bloomberg.
US consumer confidence in April unexpectedly rose to the second highest level since 2000, as optimism among Americans grew larger on both current conditions and the economic outlook, according to Conference Board data.
The Confidence Index rose to position 128.7, higher than 126 forecasts as well as the level achieved in March of 127.
On the other hand, the movement of Asian stock markets in trading today fell following the US market, as concerns about the earnings outlook weighed on industrial and tech stocks.
Meanwhile, US 10-year bond yields stabilized after breaking the 3% level, for the first time in four years.
No comments:
Post a Comment