BLBG: Rubber Climbs to Three-Week High as Weaker Yen Spurs Demand
Rubber gained for a fourth day to a three-week closing high as the Japanese currency retreated, boosting the appeal of yen-denominated contracts for the commodity traded globally in dollars.
Prices in Tokyo advanced to the highest close since May 11, recovering from an earlier drop of as much as 1 percent. The yen pared gains after strengthening as much as 0.7 percent versus the dollar.
“Rubber swung back to positive territory after the yen eased during the day,” Navarat Kaewpratarn, a marketing official at Bangkok-based Future Agri Trade Ltd, said by phone today. “Investors are taking cues from the foreign exchange rate as they are unsure about the demand outlook,” he said. Rubber is used to make tires.
Natural rubber for November delivery, the most-active contract, added 1.5 percent 171.9 a kilogram ($1,809 a metric ton) on the Tokyo Commodity Exchange.
General Motors Corp., the biggest U.S. automaker, will file for bankruptcy today, the U.S. government said. Turnaround specialist Al Koch will be GM’s chief restructuring officer, according to people familiar with the plans. The U.S. Treasury and GM, battered by almost $88 billion of losses since 2004, prepared the way for a bankruptcy filing by getting a majority of bondholders to agree to a revised reorganization plan.
Rubber for September delivery on the Shanghai Futures Exchange, the most-active contract, gained 4.2 percent to 15,345 yuan ($2,248) a ton. The exchange was closed for holidays on May 28 and May 29.
