BANGKOK, Feb 22 (Reuters) – Tokyo rubber futures rose to a
one-month high on Monday, supported by firmness in oil prices and
a weaker yen, but profit-taking capped gains, dealers said.
* Strong futures prices and falling physical supply also
pushed cash rubber prices to a 58-year high on Monday at $3.27
per kg, traders said.
* The benchmark rubber contract on the Tokyo Commodity
Exchange for July delivery rose 7.9 yen, or 2.7 percent,
to settle at 302.5 yen ($3.30) per kg. It went as high as 302.7
yen per kg, the highest since Jan. 21.
* “Rising oil prices and a weaker yen provided additional
support,” one dealer said.
* U.S. oil prices rose above $80 a barrel on Monday,
extending the previous session’s gains, supported by a weaker
dollar, refinery strikes in France and escalating tensions about
Iran’s nuclear programme. [O/R]
* The dollar slipped on Monday as investors reassessed the
chances of an earlier-than-expected interest rate hike by the
Federal Reserve, while the euro was lifted by speculation of a
quick bailout for Greece. [USD/]
* The dollar index <.DXY>, which measures the dollar against
a basket of currencies, dipped about 0.2 percent, having
retreated from an eight-month high hit on Friday.
* The yen fell 0.3 percent against the dollar, helping
to improve sentiment as a weaker yen inflates yen-priced rubber
futures.
* Dealers said TOCOM gains were limited by profit-taking
during intra-day trade.
* However, TOCOM rubber was expected to rise further on
Tuesday after prices stayed above the psychological level of 300
yen per kg, dealers said.
* For details on physical prices, click on [ID:nSGE61L01R]
($1=91.60 Yen)

Source: Reuters

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