Currencies in Indonesia and Malaysia have already taken a beating over the past year, and the interest rate increases in the U.S. are set to deal them another blow.
"These two are a little bit more vulnerable to Fed hikes, tightening in dollar liquidity (and) capital outflows," Mitul Kotecha, head of Asia foreign-exchange at Barclays, told CNBC Thursday. "Both currencies may be more susceptible to weakness as we go into next year."
That's in part because both countries are commodity exporters. Higher U.S. interest rates are set to boost the U.S. dollar, which will weigh on the prices of dollar-denominated commodities.
Sharp drops in the prices of the two country's commodity exports, have helped to weaken their currencies to levels last seen during the 1998 Asian Financial Crisis. The U.S. dollar has strengthened around 24 percent against Malaysia's ringgit and nearly 14 percent against Indonesia's rupiah so far this year.
On Wednesday, the U.S. Federal Reserve raised its target federal funds rate to a range of 0.25 to 0.5 percent on Wednesday, marking its first rate increase since June 29, 2006.
Partly due to the rate hike, oil traded lower in the U.S., with crude oil futures settling Wednesday at $35.52 a barrel, down $1.83, or 4.90 percent, after weekly EIA crude inventories showed a rise of 4.8 million barrels.