also weakened to a record low, prompting its central bank to signal it will step in to support the currency.
Why should I care?
For markets: Oil stress shows up in currencies first.
Stocks can look fine even when foreign exchange markets are flashing yellow. In this case, some equity markets held up while energy-importer currencies like the Thai baht, Indonesian rupiah, and Philippine peso weakened on fears of higher inflation and bigger trade deficits. Meanwhile, exporters and energy producers tend to have more of a cushion – Malaysia’s ringgit, for example, has held up better as higher crude prices can support national income.
The bigger picture: An energy shock can prolong the inflation fight.
If oil stays elevated, central banks may have to choose between protecting growth and cooling prices, especially because a weaker currency makes imports like fuel and food costlier in local terms. That’s why Hormuz headlines matter well beyond the region: they can keep global inflation stickier and interest rates higher for longer, even if economic data is otherwise improving.
