Asian currencies weakened against the U.S. dollar on Monday as renewed tension in the Middle East sent oil prices surging and revived fears of inflation, while South Korean shares fell 8% to trigger a circuit breaker, led lower by SK Hynix.
The U.S. dollar index crept higher against a basket of major currencies on the day as renewed conflict in the Middle East sent oil prices 4% higher, fanning inflation fears as well as the prospect of rate hikes by central banks globally.
Currencies in emerging Asia were on the back foot: the Indonesian rupiah slipped to as much as 18,140 per U.S. dollar, its weakest point in more than a month, while the South Korean won fell to 1,507.9 a dollar.
South Korea’s benchmark equity gauge KOSPI tumbled 7.96% to a 10-week low, dragged lower by a sharp 13% plunge in SK Hynix, the world’s leading AI memory chipmaker, as investors booked profits after a bumper U.S. debut on Friday.
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