NEW DELHI: Emerging Asian currencies are facing renewed pressure as elevated crude oil prices and a stronger US dollar prompt investors to increase bearish positions across several regional currencies. A Reuters poll published on Thursday showed growing caution among investors, with concerns over energy costs and global monetary policy adding to currency-market volatility.

The rise in oil prices has emerged as a key concern for Asian economies that depend heavily on energy imports. Recent disruptions linked to escalating tensions in the Middle East pushed crude prices above the $100-a-barrel mark, raising concerns that higher energy import bills could worsen trade balances and add to inflationary pressures. Although oil prices eased on Thursday after Saudi Arabia indicated it could reroute additional crude supplies through Oman, Brent crude remained above $100 a barrel.

The Reuters poll indicated that investors increased short positions against the Philippine peso, Thai baht, Indian rupee and Malaysian ringgit. The Thai baht has come under pressure from expectations of higher oil-import costs, while the Malaysian ringgit has received some support from the country's electronics trade surplus. In Indonesia, sentiment towards the rupiah improved following developments viewed by markets as contributing to greater political stability.

Investor sentiment has also weakened towards several other Asian currencies. Positions favouring the Taiwan dollar, Singapore dollar and South Korean won were reduced, reflecting broader caution across regional foreign-exchange markets.

The currency pressure is being compounded by developments in the United States. The US Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, its first rate increase in more than three years, while signalling that further tightening could be considered to contain persistent inflation. The move supported the dollar and pushed up US Treasury yields, making dollar-denominated assets relatively more attractive to investors.

India's rupee has also faced pressure from the combination of elevated oil prices, strong dollar demand and higher global bond yields. The rupee briefly weakened beyond the 96-per-dollar level on Thursday before recovering to around 95.90, with traders attributing part of the recovery to suspected intervention by the Reserve Bank of India.

For Asian economies, sustained high oil prices could increase import costs, widen external imbalances and complicate efforts by central banks to manage inflation and economic growth. The situation is particularly significant for countries that import large quantities of crude oil, as prolonged energy-price increases can feed into transportation, manufacturing and consumer prices.

Market participants are therefore closely watching developments in the Middle East, movements in crude prices, US interest-rate expectations and the strength of the dollar. Any further disruption to global oil supplies could intensify pressure on Asian currencies, while a sustained easing in oil prices could reduce some of the immediate strain on regional markets.