Commodities
Oil Shock Continues to Weigh on Asian Currencies
The ongoing US-Iran conflict and subsequent disruptions to shipping through the Strait of Hormuz have put renewed pressure on several Asian currencies.
Among them, India's rupee has been particularly affected due to its high dependence on imported oil, which accounts for a small share of domestic production.
The country's energy bill has increased sharply as a result, adding to inflation risks and worsening the terms of trade for oil-importing economies like Japan, South Korea, and Taiwan.