Impact of Rising US Interest Rates on Asian Markets

The rise in US interest rates has had a negative impact on Asian markets. Higher than expected interest rates in the US have rattled markets globally, and this uncertainty has filtered into Asia. The stronger US economy and the possibility of further interest rate hikes by the Federal Reserve have caused worry among investors. This situation has resulted in a strong dollar, weakening local currencies in Asia and increasing import costs for local economies. Certain Asian central banks have already raised interest rates or delayed rate cuts to protect their exchange rates, which directly affects the Asian markets.