Currencies across Asia and Europe fell sharply on Monday as the U.S. dollar extended its rally, driven by escalating Middle East tensions and surging oil prices. The wave of demand for the greenback has pressured markets from Tokyo to New Delhi and heightened concerns over energy supply and capital flows.
India’s rupee breached the 95-per-dollar level for the first time, touching an intraday low of 95.14 before stabilizing near 95. In Japan, the yen hovered close to 160 per dollar, its weakest since mid-2024. South Korea’s won climbed past 1,517 per dollar, the Philippine peso slid to a record low of 60.69, and the British pound posted its sharpest monthly drop against the dollar since October.
The dollar’s surge has been reinforced by the ongoing conflict in Iran and the blockade of the Strait of Hormuz, which has disrupted crude shipments to energy-dependent Asian economies. The U.S. Dollar Index traded above 100 during the session, gaining more than 4 percent against major Asian currencies this month. Brent crude’s fluctuations around $100 per barrel have further strained import-heavy economies and triggered foreign investor outflows.
In response, central banks and governments have moved to restore stability. The Reserve Bank of India on March 27 ordered banks to cap their daily net open rupee position at $100 million, effective April 10
the first such measure in nearly 15 years. Finance Minister Nirmala Sitharaman said the rupee remains relatively stable compared with other emerging market currencies. In Tokyo, Japan’s top currency official Atsushi Mimura warned that authorities may take “decisive” action if speculative movements persist.
The broad sell-off underscores mounting stress across global currency markets as the combination of high oil prices and a strong dollar reverberates through Asia and Europe.
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