Aug. 14 (Bloomberg) -- Rubber advanced to the highest level in 11 weeks as a weakening Japanese currency made yen-based contracts more attractive and data yesterday added to signs that the global economy is improving.
Rubber for delivery in January on the Tokyo Commodity Exchange gained 0.3 percent to 265.9 yen a kilogram ($2,706 a metric ton), the highest settlement for a most-active contract since May 29. Futures have lost 12 percent this year.
The yen declined as much 0.2 percent to 98.43 per dollar, the lowest since Aug. 6. U.S. retail sales advanced for a fourth month, data showed yesterday, after other reports showing German investor confidence and Japanese machinery orders topped estimates and euro-area factory output expanded in June.
“Rubber was supported by the depreciation of yen against the dollar,” said Ryuta Imazeki, an analyst at Okachi & Co.
Economists in separate Bloomberg polls estimate the number of people in the U.S. continuing to receive jobless benefits probably decreased by 18,000 to 3 million in the week ended Aug. 3, while first-time claims totaled 335,000 in the week ended Aug. 10 from 333,000 the previous week. The Labor Department releases its data tomorrow.
Rubber production in Malaysia fell 23 percent from a year earlier to 66,570 tons in June, according to the Malaysia Department of Statistics.
Rubber for delivery in January declined 0.9 percent to close at 19,680 yuan ($3,216) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board gained for a fifth day, adding 0.9 percent to 81.25 baht ($2.59) a kilogram, according to the Rubber Research Institute of Thailand.
--Editors: Jarrett Banks, Ovais Subhani