IRCo's DCP, cash rubber prices, and rubber futures fell gradually throughout the week due mainly to the influence of a strong Japanese yen against the greenback, the news on a fall in new auto sales in March in Japan, and market worries about tighter Chinese monetary policy.
Meanwhile, global stock markets were also pressured by concerns about tighter Chinese monetary policy and weak Japanese corporate exports and earnings. However, an announcement of the U.S. Federal Open Market Committee (FOMC) on Wednesday to end its second quantitative easing of US$ 600 billion in June 2011 and to keep its federal funds rate in the range of zero to 0.25% for an extended period made investors feel relieved for the rest of the week.
It is noticeable that energy and commodity prices still continued rising during the week as forex traders foresaw a further fall in the greenback against other currencies amid fierce fighting across Libya between the Gadhafi regime and the North Atlantic Treaty Organization (NATO). At the same time, Chinese Premier Wen Jiabao paid the official visits to Malaysia on 27 - 28 April and to Indonesia on 29 - 30 April in order to expand bilateral trades with the two countries. And one of many objectives of his visits is to promote the use of the yaun as a currency for trade settlement in the region.
(Source: http://www.irco.biz/MarketWise.php)
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