Asian Currencies Slide as Oil Prices Surge

Bearish sentiment toward emerging Asian currencies deepened in September 2026, according to a Reuters poll. Investors increased short positions on the Philippine peso, Thai baht, Indian rupee, and Malaysian ringgit. This trend was driven by rising U.S. Treasury yields and global oil prices exceeding $100 a barrel after attacks on the East-West pipeline in Saudi Arabia.

The Philippine peso became the most shorted currency of the group, hitting record lows three times during the month. While higher energy costs pressured import-dependent economies, analysts noted that strong electronics exports in Malaysia could provide a partial offset to the currency's weakness.

In contrast, sentiment toward the Indonesian rupiah improved. Prabowo Subianto, the President of Indonesia, replaced the finance minister with the deputy finance minister in a move intended to restore policy credibility and reassure investors. Analysts suggest that these stabilized domestic risks may help the rupiah recover despite the broader regional downturn.