KUALA LUMPUR, The Kuala Lumpur rubber market closed higher on Wednesday, bolstered by recovering crude oil prices and the weakening of the ringgit against the US dollar, a dealer said.
At 5.04 pm, the local currency contracted to 4.3800/3850 against the greenback compared with yesterday’s close of 4.3760/3810.
The dealer noted that market sentiment was supported by expectations of additional United States interest rate cuts and China’s strong commitment to meeting its economic target this year.
‘Nevertheless, further gains were capped by declines in regional rubber futures markets amid ongoing geopolitical tensions in the Middle East,’ she told Bernama.
She added that oil prices stabilised on Wednesday following industry data showing a surprise drop in US crude and gasoline inventories after two consecutive sessions of losses on expectations of easing hostilities in the Middle East.
According to the American Petroleum Institute, crude stocks dipped by 573,000 barrels in the week ended October 25.
At 5 p
m, Brent crude oil prices increased by 0.62 per cent to US$71.65 per barrel.
According to the Malaysian Rubber Board, the price of Standard Malaysian Rubber 20 (SMR 20) was up by 6.5 sen to 866.50 sen per kilogramme (kg), while latex in bulk was down by three sen to 741.0 sen per kg.
At 5 pm, SMR 20 stood at 866.5 sen per kg, while latex in bulk was at 736.5 sen per kg.
The Kuala Lumpur rubber market will be closed tomorrow (Oct 31, 2024) for the Deepavali holiday and will reopen on Friday (Nov 1, 2024).
Source: BERNAMA News Agency
