RUBBER-Japan futures fall as firm dollar weighs, supply concerns cap losses

Aug 27 (Reuters) -

• Japanese rubber futures ended daytime trade lower as a stronger dollar weighed on prices, though losses were cushioned by supply concerns after Typhoon Kajiki brought heavy rains to key producing regions.

• The Osaka Exchange (OSE) rubber contract for January delivery JRUc6, 0#2JRU: fell 5.5 yen, or 1.7%, to 317.5 yen ($2.16).

• The rubber contract on the Shanghai Futures Exchange (SHFE) for January delivery SNRv1 dipped 215 yuan, or 1.35%, to 15,760 yuan ($2,203.30) per metric ton.

• The most active October butadiene rubber contract on the SHFE SHBRv1 fell 270 yuan, or 2.25%, to 11,710 yuan per ton.

• The dollar regained some ground, rising 0.33% against the yen JPY=EBS to 147.93, following U.S. President Donald Trump's decision to fire Federal Reserve Governor Lisa Cook, eroding investors' trust in the greenback's dominance. USD/

• A stronger currency makes yen-denominated assets less affordable to overseas buyers. FRX/

• Still, torrential rains from Typhoon Kajiki sweeping through the main rubber producing areas of Southeast Asia may lead to a slow increase in new rubber production, said Chinese rubber sales portal Natural Rubber Network.

• Top rubber producer Thailand's meteorological agency warned of heavy rains and accumulations that may cause flash floods and overflows from August 27 to September 2.

• Meanwhile, oil prices were little changed after falling in the previous session as the market awaited the impact of U.S. tariffs on India for its purchase of Russian supply. O/R

• Natural rubber often takes direction from oil prices as it competes for market share with synthetic rubber, which is made from crude oil.

• Broadly, Chinese industrial profits fell for the third consecutive month in July, down 1.5% from a year earlier, with the escalation of tariffs exacerbating existing cost competition amid overcapacity concerns.

• The front-month rubber contract on Singapore Exchange's SICOM platform for September delivery STFc1 last traded at 171 U.S. cents per kg, down 1.1%.

($1 = 147.3300 yen)

($1 = 7.1529 Chinese yuan)