Asian Currencies Split: Ringgit Falls, Yen Strengthens, What About the Rupiah?
Jakarta, CNBC Indonesia - The majority of Asian currencies weakened against the US dollar in trading on Tuesday (14/7/2026). Market movements remained overshadowed by cautious investor sentiment ahead of the release of US inflation data and renewed tensions in the Middle East.
Citing Refinitiv data as of 09:15 Western Indonesia Time, six out of ten Asian currencies weakened against the US dollar, while three strengthened and one remained stagnant.
The rupiah was the only currency to move sideways this morning. The Garuda currency was positioned at Rp18,100/US$. This occurred despite the rupiah receiving a tailwind after international rating agency S&P Global Ratings reaffirmed Indonesia’s sovereign debt rating at BBB with a stable outlook.
The deepest pressure was felt by the Malaysian ringgit, which weakened 0.25% to MYR 4.078/US.ThePhilippinepesoalsoenteredtheredzone, falling0.09.
The Chinese yuan and Thai baht both weakened 0.06%, to CNY 6.783/US$ and THB 33.52/US$ respectively. The Vietnamese dong corrected 0.05% to VND 26,262/US, whiletheSingaporedollaredgeddown0.02.
On the other hand, the South Korean won led gains in Asia, strengthening 0.25% to KRW 1,494.1/US.TheJapaneseyenalsoappreciated0.04, although its position remains in weak territory. The Taiwan dollar inched up 0.04% to TWD 32.177/US$.
Meanwhile, the US Dollar Index (DXY) was observed weakening slightly by 0.01% to 101.227 this morning. Despite the marginal decline, the US dollar remains at a relatively high level.
The market is still awaiting the release of US inflation data for the June period. This data will serve as an important indicator for reading the direction of the US central bank’s (The Federal Reserve) interest rate policy.
Market focus is on the US Consumer Price Index (CPI) data to be released on Tuesday, followed by the Producer Price Index (PPI) the next day. Additionally, market participants are awaiting the first testimony of Fed Chair Kevin Warsh before the US Congress.
Beyond economic data, Middle East tensions are once again a concern for market players. US President Donald Trump stated on 14 July 2026 that Washington would re-impose a naval blockade against Tehran. The US also indicated it would ensure the Strait of Hormuz remains open by imposing certain fees, following renewed missile and drone attacks between the US and Iran.
Over the weekend, US and Iranian forces launched major attacks against each other. Tehran struck US facilities in several Gulf states on Sunday and reiterated the closure of the vital Strait of Hormuz shipping lane.
This situation immediately drove up oil prices. On Monday, oil prices surged more than 9% to a one-month high. In early trading this morning, West Texas Intermediate (WTI) and Brent crude prices rose again by more than 2% to their highest levels since mid-June.
The rise in oil prices has brought inflation risks back into focus. If energy prices continue to climb, inflationary pressures could persist longer and may prompt the Fed to raise interest rates again.
Fed Governor Christopher Waller stated that interest rates might need to rise in the near term if data shows inflation remains well above the central bank’s 2% target.
Ray Attrill, head of FX strategy at National Australia Bank, assessed that the core US inflation figure will be very important for the market.
“A core CPI number of 0.3% or higher would likely indicate, depending on the PPI data later this week, that the Fed’s favoured core PCE deflator is also running at 0.3% or higher,” Attrill was quoted by Reuters as saying.
According to Attrill, such conditions could trigger a Fed rate hike as soon as the July meeting.
“That could be the trigger for a Fed rate hike as soon as the July meeting,” Attrill said.
The median estimate of economists expects June core CPI to grow 0.2% month-on-month. Meanwhile, fed funds futures are pricing in around 30 basis points of Fed rate hikes this year.