Geopolitical Chaos Is Breaking Asia’s Currencies — And Central Banks Can’t Stop It.

Geopolitical chaos, stemming largely from supply disruptions in the Gulf affecting oil imports, is severely pressuring Asian economies and their currencies. The Philippine peso recently sank to 60.8 per dollar, prompting the Bangko Sentral ng Pilipinas (BSP) to limit intervention to tempering large swings rather than defending a specific level, as the Philippines imports 98% of its oil from the Gulf. Similarly, India's rupee weakened past 95 per dollar, marking its steepest fall since 2011-12, despite the Reserve Bank of India (RBI) capping banks' net open positions in the forex market. Foreign investors have offloaded over $19 billion in Indian equities over the past year, intensifying the selloff due to rising oil prices and concerns over India's energy-import reliance. Analysts suggest that central bank measures are failing to change the underlying dynamics, as the currencies remain vulnerable to oil supply shocks amid continued Strait of Hormuz instability.

(Source：BeInCrypto)