US-Iran War Drives Asian FX to Record Lows as US Gasoline Tops $4.50

6 articles · Updated · Reuters · May 12

Indonesia’s rupiah hit a record low Tuesday, while India and the Philippines also slid to historic lows as Asia absorbed the heaviest pressure from oil-trade disruption tied to the Strait of Hormuz.
Japan’s yen was pushed back toward 160 per dollar, with analysts saying intervention is unlikely to reverse losses while the war keeps oil prices elevated and domestic rates low.
U.S. gasoline has jumped from about $3 to more than $4.50 a gallon, raising the risk of broader inflation in everything from household goods to borrowing costs if energy prices stay high.
Jet fuel prices are up nearly 84% since the conflict began, helping force Spirit Airlines to cease operations and leaving airline stocks down about 14% this year even as the broader European market rose 3%.
U.S. 10-year Treasury yields near 4.40%—about 40 basis points above pre-war levels—are becoming another fault line, with analysts warning markets could turn more disruptive above 4.5%.

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