Indonesia’s rupiah falls to record low against US dollar

Key points

• Currency plunge comes as energy shock from the Iran war casts a cloud over Southeast Asian economies.
• The currency hit 18,028 against the greenback on Thursday, despite recent central bank efforts to provide support.
• The energy shock driven by the US-Israel war on Iran has placed a significant strain on energy-importing Southeast Asian economies, particularly Indonesia and the Philippines.
• The resulting pressure on trade balances has contributed to capital outflows and weaker currencies.
• Gulf hostilities flared again on Wednesday, sending oil prices up more than 1 percent.