BENGALURU: The Indonesian rupiah and the Indian rupee slumped to record lows on Monday, pacing losses across the region, as renewed Gulf tensions pushed oil prices and global yields higher, strengthening the dollar and pressuring oil-importing economies.
The Middle East conflict intensified as drone strikes hit UAE assets, Saudi Arabia intercepted incoming drones, and Iran moved to assert control over the Strait of Hormuz, constricting a key oil transit route.
The rupiah, one of the region’s worst-performing currencies, slumped 1.16 percent to 17,665 per US dollar, its biggest intraday percentage loss since April 2025.
The move marked the local unit’s second record low in a week and put the currency on track for its worst May since 2016, as Indonesian markets reopened after a holiday and came under renewed pressure.
The slide has been driven by the Iran war-led oil shock as well as mounting concerns over fiscal discipline, foreign outflows, central bank independence and stock-market governance after MSCI’s latest index removals.
Stocks in Jakarta tumbled more than 3.7 percent to 6,475.24 in a fifth straight session of losses, touching the lowest level since late April. The benchmark index has lost over 25 percent this year.
The Indian rupee also hit an all-time low of 96.303 per dollar, extending a slide that has gathered pace since the Iran conflict pushed oil prices higher in late February. The currency has weakened roughly 5.5 percent since then, making it Southeast Asia’s worst-performing currency this year.
Asian EM currencies have borne the brunt of a stronger dollar, with oil importers such as the rupee and the Philippine peso facing a double hit and yield-sensitive units like the rupiah also pressured by domestic headwinds, MUFG analyst Michael Wan said.
In Thailand, data showed stronger-than-expected quarterly growth, supported by exports, consumption and investment. The baht was little changed, while stocks inched up 0.2 percent.
Among other currencies, the Malaysian ringgit weakened 0.7 percent to 3.9750, hovering near the psychologically key 4.000 level and on course for a third straight session of losses.
MSCI’s emerging-market currency gauge fell 0.4 percent for a third day as a global bond selloff tightened financial conditions across risk assets.