Iran war sparks an extremely bearish scenario for Asian currencies and bonds

Golden Ten Data reported on May 21 that the Iran war is putting pressure on emerging Asian markets, pushing some currencies and bond yields to levels once considered unlikely. As the conflict continues, some analysts are drawing more extreme bearish scenarios, including the Indian rupee depreciating to 100 against the US dollar, the Indonesian rupiah falling to 18,000, and the Philippine peso devaluing to 65, as high energy prices exacerbate inflation and hit import-dependent economies. The bond market is also feeling the pressure. Benchmark yields in India may test the highs seen in 2022, while the head of the Philippine Money Market Association said yields could climb to a multi-year high of 8%.