Dec. 26 (Bloomberg) -- Rubber in Tokyo rose from the lowest level since November as Japan’s currency slid to its weakest in five years against the dollar, boosting the appeal of yen- denominated contracts.
Futures for delivery in June on the Tokyo Commodity Exchange rose 0.9 percent to end at 274.8 yen a kilogram ($2,622 a metric ton). Prices, which closed to the lowest since Nov. 29 yesterday, dropped 9.2 percent this year.
The yen weakened to 104.84 per dollar, the lowest since October 2008, amid bets the Bank of Japan will continue unprecedented easing while the U.S. Federal Reserve begins to pare stimulus. Governor Haruhiko Kuroda said today the Japanese central bank is committed to pursuing quantitative and qualitative easing and achieving a price-stability target of 2 percent at the earliest possible time.
“A declining yen gave most support to rubber futures,” said Hideshi Matsunaga, an analyst at Evolution Japan Co., a broker in Tokyo.
Rubber for May delivery on the Shanghai Futures Exchange declined 0.3 percent to close at 18,365 yuan ($3,025) a ton. Thai rubber free-on-board dropped 0.4 percent to 83.15 baht ($2.53) a kilogram today, according to the Rubber Research Institute of Thailand.
--With assistance from Supunnabul Suwannakij in Bangkok. Editors: Brett Miller, Sungwoo Park