Asian Currencies Tumble: Rupiah, Yen, and Ringgit Hit Hard, Only Won Survives
The majority of Asian currencies weakened against the United States dollar in trading on Wednesday (8/7/2026). Pressure returned from a strengthening US dollar in global markets, coinciding with renewed geopolitical tensions in the Middle East.
Referring to Refinitiv data as of 09.18 Western Indonesia Time, nine Asian currencies were observed weakening against the US dollar, while only one currency managed to strengthen.
The rupiah also fell into the red. The Garuda currency weakened 0.11% to Rp17,990 per US dollar. This position leaves the rupiah once again very close to the psychological level of Rp18,000 per US dollar.
The deepest pressure this morning was experienced by the Malaysian ringgit and the Philippine peso. Both weakened 0.22% against the US dollar. The ringgit was at MYR 4.076 per US dollar, while the Philippine peso was at PHP 61.552 per US dollar.
The Japanese yen was also under considerable pressure, weakening 0.19% to JPY 162.42 per US dollar. The Chinese yuan corrected 0.13% to CNY 6.802 per US dollar, followed by the Thai baht which weakened 0.12% to THB 33.36 per US dollar.
The Singapore dollar fell 0.08% to SGD 1.293 per US dollar, the Taiwan dollar weakened 0.06% to TWD 32.13 per US dollar, while the Vietnamese dong saw a slight correction of 0.04% to VND 26,300 per US dollar.
Amid the pressure on almost all Asian currencies, the South Korean won was the only one able to strengthen. The won edged up 0.03% to KRW 1,513.2 per US dollar.
The weakening of Asian currencies was not without reason. The US Dollar Index (DXY), which measures the greenback’s strength against six major world currencies, was observed strengthening 0.13% to 101.151 this morning.
The US dollar’s strengthening came after geopolitical tensions in the Middle East escalated again. The US launched renewed strikes against Iran, causing demand for the dollar as a safe-haven asset to increase once more.
The US dollar also received a boost after oil prices rose again. An increase in oil prices typically raises fresh inflation concerns, particularly as energy costs can spill over into the prices of other goods and services.
This increase occurred after the US launched a new wave of strikes against Iran on Tuesday and revoked a permit that allowed the country to sell oil, following an attack on three tankers in the Strait of Hormuz.
Analysts at Westpac assessed that market concerns over the stability of the peace deal have resurfaced following the attacks on ships transiting the Strait of Hormuz.
‘Concerns about the inflation outlook are in focus, causing yields to surge higher across the globe,’ Westpac analysts wrote in their research note.