Platinum futures in Tokyo dropped for a fourth day as the dollar soared against the euro, paring demand for the metal as an alternative investment.
Futures sank 16 percent this week, the biggest decline since at last 1997, as the greenback's gains came on top of mounting concern that plunging auto sales would cut demand for the metal's use in exhaust filters. The U.S. currency has gained 6.4 percent against the euro so far this week.
''Platinum is still dropping as demand remains under pressure and the dollar keeps appreciating,'' Walter de Wet, an analyst at Standard Bank Plc in Johannesburg, said in a note to clients dated today.
Platinum for August delivery sank 9.3 percent to close at 2,342 yen a gram ($786 an ounce) on the Tokyo Commodity Exchange. The most-active contract earlier fell to 2,314 yen a gram, the lowest since June 27, 2003.
Metal for immediate delivery dropped $45.25 to $765.25 an ounce at 10:26 a.m. in London, a 5.6 percent decline from New York yesterday. It earlier sank to $758.50 an ounce.
A strengthening dollar curbs the appeal of platinum and other precious metals as alternative investments by making them more expensive in foreign currency terms.
The dollar today appreciated to $1.2531 versus the euro at 9:49 a.m., London time, from $1.2934 late yesterday.
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