By K. Naveen Prabu
KUALA LUMPUR, Jan 29 (Bernama) -- The Kuala Lumpur rubber market ended higher today, supported by an uptrend in the regional rubber futures market, said a dealer.
According to the dealer, the US Federal Reserve's (Fed) decision to keep interest rates unchanged underpinned market sentiment.
“The Fed held interest rates steady amid what US central bank chief Jerome Powell described as a solid economy, diminishing risks to both inflation and employment. This outlook could signal a lengthy wait before any further reductions in borrowing costs,” she told Bernama.
Gains in crude oil prices were another contributing factor, the dealer said.
“Oil prices rose more than 1.5 per cent, extending gains for a third day, on increasing concerns that the US may carry out a military attack on key Middle Eastern producer Iran. This could disrupt supply from the region,” she said.
At the time of writing, Brent crude oil was up 1.45 per cent to US$69.39 a barrel.
Further gains were capped by reactions to the latest data reported by the Association of Natural Rubber Producing Countries (ANRPC).
“Latest reports from ANRPC member nations suggest that global natural rubber production was anticipated to increase modestly by 1.4 per cent in 2025.
“While demand figures show a marginal downward adjustment of 0.7 per cent in the latest reporting, market sentiment remains resilient, supported by recovery signals in the tyre industry.
At 3 pm, the Standard Malaysian Rubber (SMR) 20 rose by 14.0 sen to 767 sen per kilogramme (kg), while latex-in-bulk increased by 2.5 sen to 577.50 sen per kg.
-- BERNAMA
