Indonesian Rupiah Hits Record Low Amid Global Oil Price Surge

Jakarta. The Indonesian Rupiah has plummeted to its lowest level in history. On Thursday, the exchange rate reached 17,315 Rupiah per US dollar.

 This marks the weakest position ever recorded. Following the near-stoppage of the Strait of Hormuz due to the Iran conflict, global oil supplies have been disrupted, causing crude oil prices to soar.

Even the US ceasefire in Iran has failed to stabilize the situation. Despite the US halting direct attacks on Iran, the subsequent attacks on ships in the Strait of Hormuz by Iran have driven crude oil prices higher in the global market on Thursday. 

As oil becomes more expensive, countries dependent on oil imports such as Indonesia, India, the Philippines, and Thailand are facing significant strain. Rising import costs have put pressure on the currencies of these nations. The Bank of Indonesia stated on Wednesday that it would take all necessary measures to prevent the devaluation of the Rupiah. 

It was also mentioned that they are prepared to make policy adjustments to control inflation.

Since the start of the Iran conflict, the Rupiah has weakened by more than 3 percent. With this, the Indonesian Rupiah has become the second weakest Asian currency this year. The Indian Rupee holds the first position. A similar trend has been observed in other countries as well. The Philippine Peso weakened for the first time in two weeks, falling to 60.524 per dollar on Thursday, while the Thai Baht has dropped to its lowest level since April 8.