Asian Currencies Fall as Middle East Tensions Raise Oil Prices
Asian currencies weakened against the U.S. dollar on September 28 due to high global yields and oil price spikes driven by Middle East geopolitical tensions.
MUFG Bank reported that Asian currencies declined against the U.S. dollar on September 28, 2026, as high global yields and elevated oil prices pressured regional markets. The U.S. dollar rose 0.3% to 157.72 yen and 0.5% to 1360.60 won, while the Australian dollar fell 0.1% to US$0.7018.
The financial institution linked the currency volatility to ongoing geopolitical tensions in the Middle East. Specifically, disruptions along the Strait of Hormuz have prevented the normalization of oil supplies, contributing to the upward pressure on energy costs and the subsequent weakening of regional currencies.
