The currencies of two BRICS nations slid to fresh weakness against the US dollar on Thursday, underscoring mounting pressure in emerging-market FX markets.
Indonesia’s rupiah bore the brunt of the move, tumbling to around 17,315 per US dollar in spot trading. India’s rupee also softened, trading near 94.08 and edging back toward the early-April trough of 95.10 recorded previously.
Those moves come despite active interventions by both central banks. The Reserve Bank of India recently limited banks’ ability to short the rupee to positions no larger than $100 million and ordered banks to liquidate certain US dollar holdings—actions that helped the currency recover from 95.10 to as strong as 92.80 earlier. But analysts caution those steps are temporary fixes: market forces tend to reassert themselves, and sustained pressures—most notably higher oil prices—are weighing on the region’s currencies.
The dollar has held up while local currencies struggle with thin liquidity and shrinking confidence. That makes it harder for sellers to find counterparties and can choke off cash flow needed for growth, particularly in smaller FX markets.
Jakarta signaled it’s ready to respond: the Bank of Indonesia said it would take “all necessary measures” to stabilize the rupiah and flagged potential policy adjustments to support the currency and rein in inflation risks.
Weakness was not limited to BRICS alone. In Southeast Asia, the Philippine peso slid to about 60.524 per dollar and the Thai baht eased to roughly 32.44—its weakest level since early April.
For crypto markets, these currency shocks can influence local liquidity and demand for dollar- and crypto-denominated assets, as investors and institutions search for hedges amid FX volatility.
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