As international oil prices topped $120 a barrel again, currencies of emerging Asian countries, whic..

As international oil prices topped $120 a barrel again, currencies of emerging Asian countries, which are highly dependent on oil imports, fell to record lows.

According to Bloomberg, the Indian rupee was trading at Rs 95.27 per dollar as of 3:50 p.m. on the 30th. The Indonesian rupiah stood at 17,384 rupiah per dollar and the Philippine peso stood at 61.619 pesos per dollar. All three currencies are at their lowest levels ever.

Behind the weakening of these currencies is the high dependence of the three countries on crude oil imports. Higher oil prices increase the cost of introducing crude oil, which in turn leads to higher fuel costs and inflationary pressure. At the same time, concerns over worsening current and fiscal balance are growing. Investors believe this burden could make it more difficult for central banks to manage their policies.

Central banks in Asia are defending their currencies. India’s central bank has opened a dedicated dollar swap window for refiners and restricted banks from providing some financial instruments widely used in offshore rupee trading. The move is aimed at curbing speculative trading and defending against the rupee’s decline.

Indonesia’s central bank also said it is ready to take additional measures to stabilize the rupiah. It also announced a plan to strengthen intervention in the foreign exchange market in and out of the region. It is also determined to prevent the outflow of funds by strengthening regulations on the purchase of dollars.

The central bank of the Philippines signaled it could continue its modest rate hike to curb inflation. This means that if the rise in oil prices spreads beyond fuel costs and spreads to living prices as a whole, additional tightening could be initiated.

International oil prices soared on the news that the U.S. could launch further attacks on Iran.

Citing two sources, political media Axios reported that U.S. President Donald Trump is scheduled to receive a briefing on a potential military action plan against Iran from U.S. Central Command Commander Brad Cooper on the 30th (local time). The U.S. Central Command has prepared a “short-term and strong” airstrike plan against Iran to break the negotiating deadlock, which also has room for additional infrastructure strikes, it said. Military activities also raised the possibility that they would include special forces operations and ground forces to secure Iran’s highly enriched uranium stockpile.

On the ICE Futures Exchange, Brent crude futures for June delivery surged to $126.41 per barrel during the day, the highest in four years. U.S. West Texas Intermediate (WTI) crude futures also jumped to $110.9 per barrel during the day.