TOCOM FALLS FROM 1 1/2-WEEK HIGH AMID FIRMER YEN, WEAKER OIL

Benchmark Tokyo rubber futures fell on Tuesday, giving up some of their strong gains from the previous session, as investors unwound long positions amid a firmer yen and weaker oil prices.

The Tokyo Commodity Exchange (TOCOM) rubber contract for November delivery finished 2.1 yen, or 1.3 percent, lower at 153.8 yen ($1.47) per kg, sliding from a 1- 1/2-week high hit the previous day.

"The yen's rise prompted selling," a Tokyo-based dealer said.

Earlier on Tuesday, the dollar slipped to 103.58 yen, bringing the yen close to its 22-month high of 103.555 set last Thursday, though the dollar edged up later in the Asian session. A stronger yen makes yen-denominated assets less affordable when purchased in other currencies.

On the downside, oil prices fell in Asian trade after a strong two-day rally that was fed by easing concerns Britain would leave the European Union after a referendum this week, allowing market participants to focus on supply issues.

"But I expect the rubber market to move higher from here as risk appetite will likely increase, given growing expectations that British voters will chose to remain in the EU," the dealer said.

Two of the latest polls released over the weekend showed the "Remain" camp in the lead, reversing a recent rise in support for Britain pulling out of the European Union and prompting a rally in global equities, commodities and the pound on Monday.

"Also, there are concerns that supply may get tighter in Southeast Asia due to bad weather, which will support rubber prices," he said.

The most-active rubber contract on the Shanghai futures exchange for September delivery fell 105 yuan to finish at 10,835 yuan ($1,646.38) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for July delivery last traded at 127.2 U.S. cents per kg, down 2.5 cents.