Asia Lacks Unity Against America: Rupiah and Peso Plunge Dramatically
Jakarta, CNBC Indonesia - The majority of Asian countries’ currencies are in a weakening zone against the US dollar on this morning’s trading, Monday (6/4/2026). Amid the strengthening US dollar, which investors are once again chasing due to the escalation of the Iran war and the latest ultimatum from US President Donald Trump regarding the Strait of Hormuz.
According to Refinitiv data, as of 09.15 WIB, out of nine monitored Asian currencies, six weakened and three strengthened against the greenback.
The deepest weakening occurred in the Philippine peso, which fell 0.56% to PHP 60.508/US.PressurealsohittheVietnamesedong, whichweakened0.08, followed by the Taiwanese dollar, which also dropped 0.08% to TWD 32.006/US$.
Domestically, the rupiah exchange rate came under pressure again and weakened 0.06% to Rp17,000/US.Theweakeningwasfollowedbythecurrencyofaneighbouringcountry, theMalaysianringgit, whichcorrected0.05, while the Japanese yen weakened slightly by 0.01% to JPY 159.57/US$.
Amid the majority of Asian currencies weakening, some others were still able to strengthen. The South Korean won led the gains after rising 0.39% to KRW 1,504.2/US.TheThaibahtfollowed, strengthening0.21, while the Singapore dollar rose 0.05% to SGD 1.2858/US$.
This movement aligns with the strengthening of the US dollar index (DXY), which at the same time rose 0.20% to 100.231. The strengthening of the US dollar occurred as investors once again took defensive positions amid the escalation of the Iran war and growing concerns over global energy supply disruptions.
Market sentiment worsened after US President Donald Trump issued the latest ultimatum regarding the reopening of the Strait of Hormuz.
In a social media post on Easter Sunday, Trump threatened to target power plants and bridges in Iran on Tuesday (7/4/2026) if that strategic route is not reopened. Trump even set a clear deadline, namely Tuesday at 20.00 local time.
Market players assess this new ultimatum as actually reinforcing the perception that disruptions will last longer and have broader impacts on the economy.
Investors view this situation as a chain reaction: from surging oil prices, spilling over to inflation, then pushing interest rates to remain high. In such conditions, the US dollar is still seen as the most attractive safe haven asset, while gold, bonds, and the Japanese yen are not as strong as usual in responding to geopolitical tensions.
In turn, the strengthening of the US dollar in the global market reduces room for strengthening in other countries’ currencies, including Asian currencies.