Indonesia’s central bank stepped in to support the rupiah on Tuesday, while the Indian rupee slumped to a record low, as a surging dollar sparked a rout in emerging market currencies.
Escalating tensions in the Middle East following Iran’s attacks on Israel and growing expectations that the Federal Reserve will delay rate cuts have boosted the US currency.
Last week, the greenback posted its strongest weekly performance since 2022 after solid US inflation figures increased bets that the Fed will keep rates higher for longer.
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