Sept. 17 (Bloomberg) -- Rubber rebounded from a two-week low as the Japanese currency weakened against the dollar amid speculation the Federal Reserve may taper stimulus, increasing the appeal of yen-denominated futures.
The contract for February delivery on the Tokyo Commodity Exchange gained 0.5 percent to settle at 273.4 yen a kilogram ($2,756 a metric ton) after sliding to 268.4 yen, the lowest since Sept. 2. Prices lost 3.8 percent last week.
The yen depreciated to 99.36 per dollar after reaching the strongest level in two weeks yesterday. The Federal Open Market Committee will slow its monthly asset purchases to $75 billion from $85 billion at a two-day meeting that starts today, according to a Bloomberg News survey of economists.
“The focus is on whether the Fed will decide to curtail its stimulus and how the currency market will react to a decision,” said Takaki Shigemoto, an analyst at research company JSC Corp. in Tokyo.
The contract for January delivery on the Shanghai Futures Exchange rose 1.4 percent to close at 20,390 yuan ($3,331) a ton. Thai rubber free-on-board was unchanged at 82.70 baht ($2.60) a kilogram today, according to the Rubber Research Institute of Thailand.
In Thailand, rubber growers are protesting to pressure the government to pay guaranteed prices. Farmers are instigating clashes with the police to escalate the protest, Varathep Ratanakorn, the minister in the office of the prime minister, said today.
--Editors: Sungwoo Park, Jarrett Banks