{
    "success": true,
    "data": {
        "id": 1755197,
        "msgid": "rupiah-and-rupee-under-pressure-asia-faces-new-economic-dilemma-1779542592",
        "date": "2026-05-21 16:34:02",
        "title": "Rupiah and Rupee Under Pressure, Asia Faces New Economic Dilemma",
        "author": "Teuku Muhammad Valdy Arief",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Economy",
        "summary": "Asia faces currency depreciation and policy trade-offs as the Middle East conflict disrupts the Strait of Hormuz and pushes up energy prices. Central banks raise rates to defend currencies, while governments consider export controls and other interventions; investors worry about growth and credit ratings.",
        "content": "<p>Asian countries are beginning emergency steps to curb economic\npressure from rising global energy prices. The trigger is the war in the\nMiddle East which has effectively closed the Strait of Hormuz. This sea\nlane has long been the main route for global oil distribution. Asia is\nthe most vulnerable region because around 80 percent of oil passing\nthrough the Strait of Hormuz is shipped to Asian countries. Pressure is\nalready visible in the currency markets. Several Asian currencies have\nfallen to record lows against the US dollar. The situation has forced\ncentral banks to raise interest rates and deplete foreign exchange\nreserves. Governments now face a major dilemma. High interest rates risk\nslowing the economy. But if the currency continues to weaken, inflation\ncould become harder to control. The government is asking people to cut\ntravel abroad and refrain from buying gold to maintain rupee stability.\nPrime Minister Narendra Modi is even said to have reduced the motorcade\nto save fuel. Reuters reported that India\u2019s central bank is expected to\nburn through about $1 billion per day, or around Rp 17.7 trillion, to\nsupport the rupee, which is now near 97 per US dollar. This step shows\nthe heavy pressure India faces as one of the world\u2019s largest energy\nimporters. Bank Indonesia surprised markets on Wednesday by raising the\nbenchmark rate by 50 basis points to shore up the rupiah, which fell to\naround Rp 17,700 per dollar. The government has also taken control of\nstrategic commodity export management so that foreign exchange earnings\nstay in the country and the rupiah is used. However, the policy has\nsparked concerns among investors. A day after the rate hike was\nannounced, the rupiah weakened again and the Indonesia Stock Exchange\nindex tumbled. Investors worry that government policy is becoming more\ninterventionist and increases the risk of a downgrade in Indonesia\u2019s\ncredit rating. \u201cThat is not something that will encourage people to\ninvest. It\u2019s like a state intervention approach,\u201d said Charlie\nRobertson, Global Chief Economist at FIM Partners. \u201cIs this how it looks\nlike a government that knows more than the market? What has happened\nover the last six months shows not. Too many things are going in the\nwrong direction,\u201d he continued. S&amp;P Global Ratings warned that\ncentralised control of commodity exports could suppress exports and\nworsen Indonesia\u2019s balance of payments.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/rupiah-and-rupee-under-pressure-asia-faces-new-economic-dilemma-1779542592",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}