Emerging Asia Currencies Under Pressure from Rising Yields and Oil Prices

Bearish sentiment towards emerging Asian currencies deepened in recent weeks due to twin headwinds from escalating tensions in the Middle East and rising U.S. Treasury yields, a Reuters poll showed.

The attacks on Saudi Arabia's East-West pipeline last week pushed oil prices above $100 a barrel, while firmer U.S. Treasury yields reinforced the dollar's appeal, creating a challenging environment for emerging Asian currencies.

The Philippine peso remained the most shorted currency in the survey, with bearish bets climbing to their highest level in over four months. The currency is among the region's worst performers this year, having hit record lows three times in September.