Oil comes back to haunt Asian currencies as volatility increases

Asian currencies have had a turbulent start to the year as geopolitical tensions have helped revive fears about an old foe that has undermined many of them in the past: crude oil.

India’s rupee, South Korea’s won, and the Philippine peso have all seen volatility jump in the past two weeks as escalating tensions between the U.S. and Iran caused outsized swings in oil prices. If crude extends its march higher, that would saddle the three nations with heavier import bills and slower economic growth, weighing on their currencies.

Oil prices have surged since early October as Middle-East turmoil has ratcheted up. Brent crude climbed as high as $71.75 a barrel last week, from an October low of $56.16, before falling back to about $65 late on Friday in Asia.