Oil prices significantly impact Malaysian rubber prices, study finds.
The study looked at how interest rates, inflation, exchange rates, and oil prices affect the price of rubber in Malaysia from 1991 to 2005. They found that changes in oil prices and interest rates have a significant impact on rubber prices. However, inflation rates and exchange rates do not show a significant relationship with rubber prices. Rubber prices tend to decrease with changes in interest rates and inflation, but increase with changes in exchange rates and oil prices. Multiple linear regression analysis confirmed that only oil prices have a significant relationship with rubber prices.