Asian Currencies Under Severe Pressure, Rupiah Hit Record Low
Asian currencies were uniformly pressured against the US Dollar in today’s trading, Monday (18/05/2026), following the strengthening of the greenback in global markets. According to Refinitiv data as of 10:10 WIB, ten Asian currencies were observed weakening against the US Dollar.
The Rupiah experienced the most intense pressure this morning, falling 1.15% to the level of Rp17,660/US, markinganewall − timeintradaylow.SignificantpressurewasalsofeltbytheMalaysianRinggit, whichstoodatMYR3.975/US after declining 0.71%, and the Korean Won, which dropped 0.50% to KRW 1,505.2/US$.
The Philippine Peso also weakened by 0.26% to PHP 61.693/US, followedbytheTaiwanDollaratTWD31.662/US after a 0.19% correction. The Thai Baht fell 0.18% to THB 32.72/US, whiletheChineseYuanstoodatCNY6.8162/US after a 0.10% decline. The Japanese Yen and Singapore Dollar both decreased by 0.09%, reaching JPY 158.92/US$ and SGD 1.281/US$ respectively, while the Vietnamese Dong edged lower by 0.02% to VND 26,335/US$.
Currency movements in Asia today remain heavily influenced by the direction of the US Dollar in global markets. The US Dollar Index (DXY) was observed to strengthen by 0.07% to the 99.353 level. The US Dollar’s strength is attributed to rising inflationary pressures in the US, particularly due to conflicts in the Middle East. The DXY even rose above the 99.3 level, reaching its strongest position in six weeks.
Market sentiment remains overshadowed by uncertainty regarding US-Iran relations. US President Donald Trump has warned Iran to act immediately or face consequences, following a visit to China that failed to produce significant breakthroughs in trade or progress towards resolving the conflict and reopening the Strait of Hormuz.
Recent US inflation data has further bolstered the Dollar’s position. Last week’s Consumer Price Index (CPI) and Producer Price Index (PPI) data indicated that surges in energy prices are beginning to spread to broader inflation. This has led market participants to become increasingly convinced that the US Federal Reserve will not cut interest rates this year, with expectations of potential rate hikes before year-end even beginning to rise.
Investors are now awaiting the latest FOMC meeting minutes and preliminary US Purchasing Managers’ Index (PMI) data for further clues regarding the direction of monetary policy and US economic conditions. Under these circumstances, the US Dollar maintains the potential to remain strong. As the US Dollar strengthens, other currencies, including those in Asia, tend to face greater pressure. Consequently, as long as US inflation remains high and Middle East conflicts persist, pressure on regional currencies, including the Rupiah, is likely to continue.