Applause! Rupiah Strengthens as Asian Currencies Face Heavy Pressure
Jakarta, CNBC Indonesia - The majority of Asian currencies moved lower against the US dollar on early trading this week, Monday (20/4/2026). Pressure mounted alongside the strengthening of the US dollar in global markets amid renewed heating of US-Iran geopolitical tensions.
According to Refinitiv data, as of 09:15 WIB, out of 11 Asian currencies, eight were observed weakening, two strengthening, and one stagnant against the greenback.
The largest weakening occurred in the Philippine currency, the peso. The Philippine peso was tracked in the red zone with a depreciation of 0.66%, or rising to PHP 60/US.PressurewasalsoevidentintheSouthKoreancurrency, thewon.ThewonweakenedtoKRW1, 473.47/US, or depreciated by up to 0.48%.
Similarly, the Thai baht corrected by 0.44% to THB 32.03/US.Next, theSingaporedollarweakened0.20, followed by the Japanese yen, which fell 0.15% to JPY 158.86/US$.
The Taiwan dollar weakened 0.09% to TWD 31.49/US, whiletheVietnamesedongfell0.08, and the Chinese yuan weakened 0.05% to CNY 6.81/US$.
Amid the majority of Asian currencies weakening against the greenback, the rupiah exchange rate was instead able to perform strongly with a strengthening of 0.06% to Rp17,170/US$.
The strengthening was also followed by the Indian rupee, which appreciated to INR 92.58/US$, or strengthened slightly by 0.02%.
This movement aligns with the strengthening of the US dollar index (DXY), which at the same time rose 0.21% to 98.306, reaching the highest level in a week. This condition occurred after US-Iran tensions increased again and prospects for a peace agreement were deemed increasingly weak.
The US, on Sunday (19/4/2026), reportedly seized an Iranian cargo ship attempting to break the blockade, while Iran stated it would retaliate. Tehran also affirmed it would not participate in the second round of negotiations hoped for by the US to begin before the two-week ceasefire ends on Tuesday.
This weekend’s escalation has once again lifted the “geopolitical risk premium” that had eased when markets began hoping for a “peace dividend”. At the same time, the rise in oil prices has become a concern because its impact is not only on energy but can also spill over to inflation, growth, and global interest rate expectations.
“This weekend’s escalation has revived the geopolitical risk premium just as markets began pricing in the peace dividend. The rise in oil prices is not just an energy story, but also a story of growth and interest rates,” said Saxo Chief Investment Strategist Charu Chanana, quoted on Monday (20/4/2026).
The war, now entering its eighth week, continues to trigger energy supply shocks, especially because the Strait of Hormuz, which serves as a route for about one-fifth of the world’s oil shipments, remains disrupted.
The US is still maintaining the blockade around Iranian ports. This situation has led Iran to change its stance after previously opening access in the Strait of Hormuz; Tehran has reimposed restrictions on maritime traffic in that strategic route.
This condition has made the US dollar sought after again as a safe-haven asset and, in turn, narrowed the room for strengthening of other countries’ currencies, including Asian currencies, in early trading this week.