Indonesia’s rupiah falls to record low against US dollar

Indonesia's rupiah hit 18,028 against the US dollar on Thursday, breaching the psychological 18,000 level amid surging energy costs from the US-Israel war on Iran. The energy shock is straining Southeast Asian economies, particularly Indonesia and the Philippines, leading to capital outflows and weaker currencies. Permata Bank chief economist Josua Pardede said high dollar demand from oil price spikes and a narrowing trade surplus are fueling the depreciation. Despite rate hikes and intervention by Bank Indonesia, the rupiah continues to weaken.