Rubber Market Ends Lower On Stronger Ringgit

By K. Naveen Prabu

KUALA LUMPUR, Aug 14 (Bernama) -- The rubber market ended lower on Friday, weighed down by a slightly stronger ringgit against the US dollar, a dealer said.

Earlier today, the local currency rose to 4.0835/0895 against the greenback from yesterday’s close of 4.0850/0890. 

The dealer said market sentiment was also dampened by weak consumer demand and intense price competition in China's domestic automotive market.

“Weak Chinese domestic vehicle demand remained a concern, despite stronger overseas sales, limiting expectations for near-term demand growth,” she told Bernama. 

Nevertheless, the dealer said firmer crude oil prices provided some support.

“Oil prices edged higher as US threats of a naval blockade of Iran revived concerns over potential crude supply disruptions,” she said. 

At the time of writing, Brent crude jumped by 0.95 per cent to US$87.90 per barrel.

Meanwhile, at 3 pm, the price of Standard Malaysian Rubber 20 (SMR 20) declined by seven sen to 909 sen per kilogramme (kg) while latex in bulk decreased 3.5 sen to 688.50 sen per kg.

-- BERNAMA