Oil Shock Pressures Asian Currencies as Investors Turn Bearish on Peso, Baht and Rupiah

SINGAPORE: High oil prices and rising US bond yields are putting renewed pressure on several Asian currencies, particularly in economies that depend heavily on imported energy.

Rupiah, peso and baht face pressure

A Reuters poll showed bearish positioning remained firm on the Philippine peso and Thai baht, while short positions on Indonesia’s rupiah rose to their highest since late July.

Higher energy import bills can weaken external balances and add inflation pressure, while elevated US yields increase the relative attraction of dollar assets.

Chinese yuan stands apart

Investor positioning on China’s yuan has been comparatively more positive, illustrating how currency performance can diverge even when the wider region faces the same global oil and interest-rate shock.

Follow Asian markets on NewsNationOnline. Source: Reuters.

Imran Siddiqui

See Full Bio