Asian currencies declined today as the conflict in Iraq kept driving prices for crude oil higher, endangering economies of emerging markets. The Indian rupee and the Indonesian rupiah led the decline.
Clashes between the government military and Islamist militants threaten to disrupt oil supply, and this pushed prices for crude higher. High energy prices will likely have an adverse impact on emerging economies, especially on those with a negative trade balances. Both India and Indonesia are vulnerable to this threat, thus their currencies are losing their appeal to investors.
USD/INR rose from 60.0900 to 60.1805, and USD/IDR went up from 11,935 to 11,973 as of 10:08 GMT today.
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