Indonesian rupiah hits record low: Top 5 Asian currencies that have drastically fallen amid West Asia crisis
Indonesia’s currency hit a record low on Thursday (4 June). Asian currencies have taken a drastic hit since the US-Iran war. The Indian rupee is among the worst-performing currencies due to the crisis.
Indonesian rupiah hits record low
The Indonesian rupiah has hit its lowest ever against the US dollar. The currency crossed the psychological 18,000 barrier for the first time on Thursday (4 June). This comes amid surging energy costs fueled by the prolonged West Asia crisis.
Geopolitical shock on Asian currencies
Asian economies heavily dependent on fuel imports are experiencing a significant strain as global crude oil prices continue to rise. The shock driven by the escalating US-Israel war on Iran has led to currencies plummeting against the greenback across the Asia-Pacific region.
Indian Rupee (INR)
India’s currency is falling the fastest in Asia against the dollar, emerging as the region’s worst-performing. The Indian rupee breached the historic 96-per-dollar mark in May, leaving experts concerned about it breaching the psychological 100 threshold. The country imports a majority of its oil and the rise in prices is a principal reason for the plunge.
Philippine Peso (PHP)
The Philippine Peso is also hovering around historic lows, closing at over 61 to the dollar on 19 May. The decline is driven by Philippine’s reliance on fuel and oil imports along with its persistent trade deficits.
Thai Baht (THB)
Thailand’s currency has experienced a considerable decline since the start of the Middle-East crisis. The Thai Baht has fallen by roughly 7 to 8 per cent, according to reports, and neared around 35-per-dollar in recent months. The depreciation has been triggered by surging oil and liquified natural gas (LNG) costs, which Thailand heavily imports.
South Korean Won (KRW)
South Korea’s won dropped to its weakest level in 17 years in March and breached the 1,500 mark against the dollar. As one of the largest crude oil importers, the rise in prices have left South Korea with severe inflation and capital outflows.
Japanese Yen (JPY)
The Japanese currency yen’s status as a “safe-have” currency has been strained as the global crisis mounts pressure. Yen fell to the 160-per-dollar mark on Wednesday (3 June). Since Japan buys over 90 per cent of its oil from the West Asia and relies on the Strait of Hormuz, the crisis has worsened its import bills and left the currency highly sensitive.
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