Aug. 15 (Bloomberg) -- Rubber fell from an 11-week high as the Japanese currency strengthened after a U.S. Federal Reserve official cautioned against excessive optimism over the economy.
Rubber for delivery in January on the Tokyo Commodity Exchange dropped 0.5 percent to end at 264.6 yen a kilogram ($2,704 a metric ton). Futures settled at 265.9 yen yesterday, the highest close for a most-active contract since May 29. The commodity used in tires has lost 13 percent this year.
The yen climbed as much as 0.6 percent to 97.59 against the dollar for a second day after St. Louis Fed President James Bullard said yesterday policy makers should be careful in changing course based solely on their economic forecasts. Economists predict a report today will show gains in U.S. consumer prices slowed last month.
“The stronger yen prompted investors to sell Tocom rubber after the recent rally,” said Gu Jiong, an analyst at commodity broker Yutaka Shoji Co.
Rubber for delivery in January fell 0.8 percent to close at 19,525 yuan ($3,192) a ton on the Shanghai Futures Exchange. Thai rubber free-on-board dropped 0.3 percent to 81 baht ($2.59) a kilogram today, according to the Rubber Research Institute of Thailand.
--Editors: Jarrett Banks, Sungwoo Park