US-Iran War Drives Asian Currencies to Record Lows
The US-Iran war is pushing Asian currencies to record lows as fuel costs rise. Surging energy prices and bond yields now threaten broader global market stability.
The ongoing conflict between the United States and Iran is disrupting global markets, driving Asian currencies to record lows and forcing airline closures. Energy and food supply chains face mounting pressure as the war enters its third month. Investors are now repricing risk as 10-year Treasury yields hover 40 bps above pre-war levels.
### Asian Currencies Under Pressure The Indonesia rupiah fell to a record low on Tuesday as regional markets reacted to the conflict. About 80% of sea-borne oil passing through the Strait of Hormuz is destined for Asia, leaving the region highly exposed to supply shocks. Currencies in India and the Philippines have also hit historic lows.
