Benchmark Tokyo rubber futures ended slightly higher on Friday, erasing early losses as the yen weakened against the dollar after theBank of Japan increased its purchases of Japanese government bonds in a move aimed at stemming a rise in yields.
The dollar extended gains against its Japanese counterpart after the BOJ's move, rising 0.6 percent to 113.830 yen after touching a session high of 113.835 yen, its highest level since May 12.
A weaker yen makes commodities denominated in the Japanese currency cheaper for holders of other currencies.
Tokyo Commodity Exchange (TOCOM) futures, which set the tone for tyre rubber prices in Southeast Asia, also found support from firm Shanghaicounterparts, brokers said.
The Tokyo Commodity Exchange rubber contract for December delivery finished 0.6 yen higher at 197.1 yen ($1.73) per kg. For the week the contract declined 1.9 percent.
Crude rubber inventories at Japanese ports stood at 6,348 tonnes as of June 30, up 22.1 percent from the last inventory date, data from the Rubber Trade Association of Japan showed on Friday.
The most-active rubber contract on the Shanghai Futures Exchange for September delivery rose 70 yuan to finish at 12,885 yuan ($1,895) per tonne.
The front-month rubber contract on Singapore's SICOM exchange for August delivery last traded at 145.60 U.S. cents per kg, down 2 cents.
($1 = 113.7600 yen) ($1 = 6.8005 Chinese yuan)
