In fact, some Asian currencies, like the Indonesian rupiah, came under pressure when oil prices reached a record high this August. However, the economic fundamentals of most Asian countries are much stronger than in the 1970s when they were hit by the worst oil market turmoil ever. In addition, Asian countries responded swiftly this time by raising interest rates or slashing public fuel subsidies.
These prompt actions have helped them minimize potential disruptions to their economies. Furthermore, Asian countries have large volumes of foreign reserves and only a small amount of external debt in comparison to both their own past and developing countries in other parts of the globe.