Asian currencies have emerged as some of the biggest casualties of the conflict-driven oil shock. Indonesia’s rupiah recently fell to a record low, while currencies in India and the Philippines also weakened significantly. Other Asian economies, including South Korea, Thailand, and Malaysia, have faced mounting pressure in foreign exchange markets.
The region’s vulnerability stems from its dependence on Middle Eastern oil, with nearly 80% of oil transported through the Strait of Hormuz heading toward Asia. Central banks across the region have intervened aggressively to stabilize their currencies, though analysts believe authorities may soon need more creative measures beyond reserve sales.