Indonesian rupiah crashes to record low against US dollar

Asian currencies came under renewed pressure as the Indonesian rupiah plunged to a record low, driven by rising oil prices and ongoing global market uncertainty.

The rupiah fell sharply to 17,315 against the U.S. dollar, marking its weakest level on record, as markets reacted to sustained energy price volatility linked to geopolitical tensions, News.Az reports, citing Al Jazeera.

The currency weakness has been most severe among emerging Asian economies, particularly those heavily dependent on energy imports.

Countries such as Indonesia, India, Philippines, and Thailand have been hit hard by higher global oil prices, which surged amid disruptions to energy trade routes and continued uncertainty in global supply chains.

The pressure on markets intensified after the closure of the Strait of Hormuz and ongoing concerns surrounding a fragile ceasefire between the U.S. and Iran, both of which have kept oil prices elevated for an extended period.

In response, Bank Indonesia said it would take “all necessary measures” to stabilize the rupiah, including possible policy adjustments to support the currency and contain inflation risks.

Despite intervention efforts, the rupiah has now lost more than 3% since the conflict began earlier this year, making it the second-worst-performing Asian currency in 2026 after the Indian rupee.

Elsewhere in the region, the Philippine peso weakened to 60.524 per dollar—its lowest level in over two weeks—while the Thai baht slipped to 32.44, its weakest since early April.

Analysts say sustained energy costs and a strong U.S. dollar are likely to keep pressure on Asian currencies in the near term, especially for import-dependent economies.

News.Az 

By Aysel Mammadzada