Rubber reaches 7-week low as dollar gains
Tuesday, 9 February 2010
TOKYO, Feb 8 (Bloomberg): Rubber declined for a third day to the lowest level in almost seven weeks as a strong dollar may weaken investor demand for commodities and a possible recall by Toyota Motor Corp of its Prius cars may slow auto sales.
Futures in Tokyo fell as much as 0.7 per cent to 266.2 yen per kilogram ($2,981 a metric tonne), the lowest since December 22. It slumped 5.3 per cent on February 5, the biggest daily loss since September 14. The commodity used in tires has fallen 3.4 per cent this year after reaching a 16-month high of 306 yen on January 15.
The dollar climbed toward the highest level in eight months against the euro on speculation mounting budget deficits in some European nations will keep policymakers from raising interest rates.
Futures in Tokyo fell as much as 0.7 per cent to 266.2 yen per kilogram ($2,981 a metric tonne), the lowest since December 22. It slumped 5.3 per cent on February 5, the biggest daily loss since September 14. The commodity used in tires has fallen 3.4 per cent this year after reaching a 16-month high of 306 yen on January 15.
The dollar climbed toward the highest level in eight months against the euro on speculation mounting budget deficits in some European nations will keep policymakers from raising interest rates.