Oct. 9 (Bloomberg) -- Rubber climbed for a third day to the highest level in a week as President Barack Obama’s nomination of Janet Yellen to head the U.S. Federal Reserve weakened Japan’s currency and boosted the appeal of yen-based futures.
The contract for March delivery on the Tokyo Commodity Exchange added 0.2 percent to 264.8 yen a kilogram ($2,719 a metric ton), the highest settlement for a most-active contract since Sept. 30. The rally pared losses to 12 percent this year.
Fed Vice Chairman Yellen, 67, would succeed Chairman Ben S. Bernanke, whose term ends Jan. 31. She was the favorite in surveys of economists and had the backing of 20 members of the Senate Democratic caucus who signed a July 26 letter to Obama.
“Yellen is known as a supporter of monetary stimulus for economic growth, which is positive for commodities prices,” said Hideshi Matsunaga, an analyst at broker ACE Koeki Co.
Gains in futures were limited after the International Monetary Fund cut its growth outlook for this year and next, raising concern raw-material demand may weaken. IMF also warned a U.S. government default could “seriously damage” the world economy while capital outflows would weaken emerging markets.
Rubber for January delivery on the Shanghai Futures Exchange lost 0.2 percent to 20,545 yuan ($3,357) a ton. Thai rubber free-on-board was unchanged at 79.5 baht ($2.53) a kilogram today, according to the Rubber Research Institute of Thailand.
--Editors: Brett Miller, Jarrett Banks