-
The ongoing geopolitical conflict in the Middle East has created turmoil in the foreign exchange market. The closure of the Strait of Hormuz has caused supply disruption, pushing crude oil prices above US$100/bbl in April and currently resting at about US$90/bbl. The resultant energy shock has reduced trade surplus for oil-importing countries.
- - Read this at SGinvestors.io -
IDR and INR suffered the brunt of depreciation.
-
The Indonesian Rupiah (IDR) and Indian Rupee (INR) are the worst affected, having depreciated 7.4% and 6.0% respectively against the Singapore Dollar (S$) in 5M26.
-
Besides the energy shock, the IDR is affected by concerns over President Prabowo’s populist spending programmes, including free nutritious meals for school children. Investors have also lost confidence following the MSCI quarterly review, which led to six major companies being dropped from the MSCI Indonesia Global Standard Index effective 29 May 26.
- - Read this at SGinvestors.io -
Singapore is an oasis of calm during periods of financial stress.
- Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2026-06-10
More reports on banking & finance sector:
Analyst Reports on Singapore Banking & Finance Sector
Read also:
Analyst Reports on DBS Group
Analyst Reports on OCBC Bank
Analyst Reports on United Overseas Bank (UOB)
