An increase in interest rates is one of the monetary policies that has a significant impact on global markets. Increases in interest rates are usually implemented by central banks in an effort to control inflation. However, the impact is not only limited to the domestic economy, but also affects various aspects of the global market. One of the main impacts of an increase in interest rates is the strengthening of the currency of the country concerned. When interest rates increase, investment returns in the country also increase, attracting foreign capital flows. This causes the country’s currency to strengthen against other currencies. For example, after the US Federal Reserve increased interest rates, the US dollar became stronger, which could cause pressure on developing countries that rely on dollar-denominated debt. The next impact is seen in the stock market. An increase in interest rates is often accompanied by a decrease in economic activity due to higher borrowing costs. This can lead to a decrease in company profits, which can be seen in a decrease in share prices. Investors typically become more cautious, moving their investments from higher-risk stocks to safer assets when interest rates rise. In the commodity sector, rising interest rates can cause changes in prices. A stronger dollar usually causes commodity prices, such as oil and gold, to move down because those commodities are priced in dollars. Falling commodity prices can have a negative impact on commodity producing countries, reducing their income and weakening local economies. Rising interest rates also affect access to credit. With higher borrowing costs, individuals and businesses may find it more difficult to finance new or consumption projects. This has the potential to hamper economic growth in various countries, especially in developing countries which are highly dependent on foreign investment. From a global perspective, rising interest rates in developed countries could lead to reduced capital flows to emerging markets. Investors tend to shift to safer assets in developed countries, thereby reducing liquidity in developing countries. This could worsen economic conditions in those countries, causing greater market volatility. More broadly, bond markets were also affected. When interest rates rise, the prices of previously issued bonds usually fall. This results in an increase in yield for new bonds. Investors who were once active in high-risk bonds may shift to safer bonds, changing the dynamics of bond markets globally. Thus, the impact of rising interest rates on global markets is very broad and complex. From strengthening currencies, to changes in share prices, to broader impacts on the economy and bond markets, all of these elements interact. A deep understanding of these mechanisms is essential for investors and policy makers to respond effectively and strategically in ever-changing global markets.