Asian currencies hit record lows as oil surges above $120. The Indonesian rupiah, Indian rupee, and Philippine peso are among the weakest performers in emerging markets, sliding sharply against the dollar. These nations' heavy reliance on imported oil has left their currencies highly vulnerable to energy supply shocks. Higher fuel costs threaten to rekindle inflation, worsen current and fiscal deficits, and complicate central banks' efforts to stabilize economies while containing prices. Market experts warn that structural vulnerabilities make Asian currencies far from safe, with risks from potential military escalation and supply disruptions at the Strait of Hormuz. Currency options traders are pricing in significant weakness ahead, signaling investor concerns about further depreciation in coming months.
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