Rubber price rally continued at the end of the fourth consecutive day of trading on Monday (21/05/2018), as the weakening performance of the Japanese yen currency.
The price of rubber for delivery in October 2018, the most active contract on the Tokyo Commodity Exchange (Tocom), closed up 3.15 percent or 6.10 points at 200 yen per kilogram (kg), the highest level of all-time contracts.
This morning, the main commodity price of tire manufacture opened with a 0.31% rise or 0.60 points at 194.50, after ending up 2.11% or 4 points at 193.90 level on Friday (18/5) .
Meanwhile, today's yen exchange rate was down 0.55% or 0.61 points to 111.37 per US dollar at 13.46 WIB, after expiring slightly 0.01% or 0.01 points at the level of 110.76 on Friday trading (18/5).
"Rubber stocks were buoyed by buying as fears surrounding China's economy have eased after the United States and China agreed to suspend the potential for trade war," Gu Jiong, an analyst with Yutaka Shoji, told Bloomberg.
According to a report by Xinhua News Agency quoted by Bloomberg on Sunday (20/05/2018), Chinese Vice Premier Liu He as China's special envoy Xi Xiping to Washington stated talks with US officials including US Treasury Secretary Steven Mnuchin, US Commerce Minister Wilbur Ross , and US Trade Representative (USTR) Robert Lighthizer, ended with a decision not to trigger a trade war.
"The weakening yen against the US dollar also makes the yen-denominated futures market more affordable for foreign investors," said Gu.
The strengthening of rubber, he added, was also supported by Thai rubber prices that remained strong in the middle of a low production season until May.
In line with rubber, West Texas Intermediate (WTI) oil prices for June delivery rose 0.70% or 0.50 points to $ 71.78 a barrel on the New York Mercantile Exchange at 1336 GMT.
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