TOKYO, Aug 10 (Reuters) – Benchmark Tokyo rubber futures fell for a second straight session on Wednesday, pressured by a stronger yen, but trading volumes were light with many traders and investors away on summer holidays. The Tokyo Commodity Exchange (TOCOM) rubber contract for January delivery JRUc6 0#2JRU: finished 0.8 yen, or 0.5 percent, lower at 152.6 yen ($1.50) per kg. “A stronger yen prompted some selling in the morning while weaker Shanghai stock market and Shanghai rubber futures also added to the pressure,” said Toshitaka Tazawa, an analyst with Fujitomi Co.
The dollar fell against the yen as investors re-evaluated whether the U.S.Federal Reserve will raise interest rates this year.
The U.S. currency dropped 0.5 percent to 101.40 yen JPY= , having gone as high as 102.66 on Monday on strong nonfarm payrolls data. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.
China shares declined, with property stocks falling sharply as investors took profits from six days of gains. The most-active rubber contract on the Shanghai futures exchange for January delivery SNRcv1 fell 60 yuan to finish at 12,660 yuan ($1,906.86) per tonne. “With many investors and dealers away for summer vacations, trades were really thin and trades will stay like this until the end of next week,” Tazawa said, adding that the benchmark might stay in a narrow trading range between around 150 yen and 155 yen for the next two weeks.
The front-month rubber contract on Singapore’s SICOM exchange for September delivery STFc1 last traded at 129.4 U.S. cents per kg, down 1.6 cents. ($1 = 101.4400 yen) ($1 = 6.6392 Chinese yuan)
(Reporting by Yuka Obayashi; Editing by Subhranshu Sahu)