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LONDON, Sept 20 (Reuters) - The precious metal platinum , widely used in autocatalysts and jewellery, was priced at a 15-month high in London on Friday after what traders said was a squeeze in lending rates for the metal.
Platinum was set or "fixed" in the twice-daily London fixing session at $570.00 an ounce, up from the previous fix of $568.00, to hit its highest level since June 26, 2001.
Heavy lending of the metal in U.S. futures markets overnight spurred strong short covering in Japanese markets on Friday, when demand was also fanned by yen losses against the dollar , traders said.
"Platinum rates tightened sharply yesterday as heavy borrowing was seen, initially in short dates but eventually out to one year. One-month platinum has tightened by about three percent since yesterday morning," said John Reade, metals analytst at UBS Warburg.
Traders pegged the one-month lease rate at 15 percent, compared with 8.57 the previous day.
The price rally cames despite subdued physical demand and news on Thursday that U.S. auto giant General motors Corp plans to slash the amount of platinum group metals in its vehicles by 17 percent by 2006.