IRCo's DCP fell from Monday to Tuesday due mainly to the persistent bearish market sentiments on the geopolitical violence in the Arab world, and the earthquake and tsunami in Japan. Nonetheless, natural rubber (NR) prices on both rubber futures and physical markets turned around on Wednesday and ended the week higher after the Thai government announced on Monday that it would not sell NR below 120 baht/kg (US$4.0/kilogram), and IRCo also conveyed messages to the global rubber market that Indonesia, Malaysia, and Thailand were prepared for implementing appropriate measures to support NR prices if they fell below fundamental levels, including halting NR exports if necessary.
Global stock markets felt relieved on Friday after the United Nations passed a resolution on Thursday calling for a no-fly zone and authorized all necessary measures to protect civilians against Gaddafi's forces ahead of a cease-fire declaration by the Gaddafi regime on the following day. Meanwhile, the G-7 Finance Ministers and central bank governors announced late Thursday that they would help weaken the Japanese currency to support Japan’s economy.
Nevertheless, the global stock markets mostly ended the week lower than an earlier Friday as investors still lacked confidence in global economic stability due to persistent geopolitical concerns in the Arab world and high oil price volatility in particular.
The Indonesian rupiah and Thai baht strengthened slightly against the greenback on Friday but the Malaysian ringgit. The three currencies still have more room to strengthen further over the course of this year because of their firm economic performance. On the contrary, a move of the Japanese yen is mainly tied to a move of the greenback and its demand on the foreign exchange market.
(Source: http://www.irco.biz/MarketWise.php)
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