Oct. 17 (Bloomberg) -- Rubber declined, reversing an earlier rally to the highest price in almost three weeks, as a strengthening Japanese currency countered an agreement to end a U.S. fiscal impasse.
The contract for March delivery dropped 0.4 percent to settle at 268.8 yen a kilogram ($2,745 a metric ton) on the Tokyo Commodity Exchange. The price earlier reached 276 yen, the highest intra-day level since Sept. 27.
The yen appreciated against the dollar, reversing an earlier drop, as President Barack Obama signed into law a measure ending a U.S. government shutdown and extending its borrowing authority until early 2014. A stronger Japanese currency reduces the appeal of yen-denominated contracts.
“Investors cashed in on profits, taking cues from a stronger yen,” Navarat Kaewpratarn, a marketing official at Future Agri Trade Co., said by phone from Bangkok.
Rubber for January delivery on the Shanghai Futures Exchange fell 2.1 percent to close at 20,405 yuan ($3,348) a ton. Thai rubber free-on-board remained unchanged at 81.05 baht ($2.61) a kilogram today, according to the Rubber Research Institute of Thailand.
--Editors: Sungwoo Park, Jarrett Banks