The US dollar’s sustained rise is causing Asian currencies to fall to multi-month lows and pressuring the euro, leading Japan and China to defend their exchange rates.

Japan’s top currency official warned of rapid yen falls and China’s central bank issued its most aggressive daily reference rate for the yuan, causing the controlled currency to drop to a level not seen since 2007.

The possibility of higher-for-longer US rates is reigniting pressure, and investors will be cautious.

The euro and pound have fallen to their lowest levels since June on concerns that central banks in the euro zone and UK may need to lower rates faster than the Fed as their economies struggle with increased borrowing costs.

High oil prices have raised inflation fears, damaging Asian central banks’ interest rate hike prospects and hurting local-currency bonds.

The yen and yuan are among the weakest Asian currencies this year.