Sept. 27 (Bloomberg) -- Rubber declined to the lowest level in a month, paring a quarterly advance, as a strengthening Japanese currency cut the appeal of the commodity used in tires.
The contract for March delivery on the Tokyo Commodity Exchange lost 2.7 percent to end at 270.2 yen a kilogram ($2,741 a metric ton), the lowest settlement since Aug. 30. Futures have gained 14 percent this quarter, the first such climb this year, paring losses to 11 percent for the year.
The yen strengthened versus all of its 16 major counterparts as investors sought safety amid concern that a budget deadlock among U.S. lawmakers will send the nation to the brink of a federal government shutdown.
“The strengthening yen hurt rubber futures,” said Naohiro Niimura, a partner at research company Market Risk Advisory Co. in Tokyo. The currency traded at 98.65 per dollar.
Rubber for January delivery on the Shanghai Futures Exchange fell 1.7 percent to 20,260 yuan ($3,310) a ton. Chinese markets will be closed Oct. 1-7.
Thai rubber free-on-board declined for a third day, dropping 0.6 percent to 81.05 baht ($2.59) a kilogram today, according to the Rubber Research Institute of Thailand.
--Editors: Jarrett Banks, Ovais Subhani