* Indonesian rupiah hits record low, cen.bank to take

measures

* Indonesian economy grows at fastest pace in three years

in Q1

* Romania no-confidence vote due later on Tuesday

* MSCI EM FX off 0.2%, stocks down 0.3%

By Purvi Agarwal

May 5 (Reuters) - Most emerging market currencies and

stocks inched lower on Tuesday, as fresh tensions between the

U.S. and Iran in Gulf waters dampened risk appetite and kept oil

prices elevated.

The U.S. and Iran launched new attacks on Monday as they

wrestled for control of the Strait of Hormuz with duelling

blockades, threatening the fragile ceasefire in place since

early April.

Oil was recorded at more than $113 a barrel on Tuesday,

clouding prospects of global economic growth as energy-driven

inflation fears come into the spotlight.

Mohit Kumar, an economist at Jefferies, said that control

over the strait is the most important negotiating card for Iran

so there could be escalations in the coming days as the U.S.

plans protecting ships through the waterway.

Asian economies that are most reliant on imported oil were

heavily hit.

Indonesia's rupiah hit a record low of 17,445 a dollar.

The central bank said it will take measured steps to support the

currency, and the economic minister said they will conduct

currency swaps with China, Japan and South Korea.

This even as Indonesia's economy grew at its fastest annual pace

in more than three years at the start of 2026, boosted by a

surge in government spending and holiday celebrations.

The Philippine peso was hovering around a record low

as well, and has been the worst hit among Asian peers since the

war began in late February.

MSCI's index tracking global EM currencies

fell 0.2%, while the stocks gauge was down 0.3%.

The latter has been hovering around record highs tracking

optimism on Wall Street, and after the U.S. and Iran agreed to a

ceasefire.

"EM equities remain vulnerable if the Iran war drags on with

prolonged disruptions in the Strait of Hormuz, resulting in a

depletion of Asian oil reserves," said analysts at Wells Fargo

Investment Institute.

"We would consider a potential upgrade if market volatility

presents an opportunity to invest at more attractive prices."

Turkey's lira was little changed against the

dollar, while South Africa's rand strengthened 0.1% on

the back of an uptick in gold prices.

Stocks in these markets were up 0.4% and

0.8%, respectively.

Most currencies in emerging Europe were subdued against the

euro. Romania's leu was little changed ahead of a

no-confidence vote against the government.

Months of political deadlock could follow, that can endanger

reforms needed to tap into EU funds, and also put Romania's

credit rating at risk.

Stocks in Romania were up 0.3%, while ones in Poland

and Hungary were up 0.9% and 0.2%,

respectively.

HIGHLIGHTS:

** IMF chief Georgieva warns of 'much worse outcome' if Middle

East war drags into 2027

** Thailand scraps 25-year-old agreement with Cambodia on joint

energy exploration

** S&P affirms Qatar credit ratings, expects 'sizable' assets to

mitigate Iran war impact

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For TURKISH market report, see

For RUSSIAN market report, see