With investment flows already volatile, Asian policymakers may also need to accelerate debate on strengthening the region's financial safety net, said Asakawa, who was formerly Japan's top currency diplomat.

While Asia is far from experiencing a crisis, many emerging nations are being forced to raise interest rates to stem capital outflows at the cost of slowing their economies, he said.

Unless they raise rates, Asian emerging economies would see their currencies depreciate and inflate the size of their huge debt borrowed in dollars, Asakawa said.

Some discomfort at the dollar's rise, or at least at the pace of its gains, is already clear in Asia.

Asian policymakers must also prepare for when volatile market moves destabilize regional economies, he added.

In the longer run, Asian emerging nations can make their economies less vulnerable to market swings by boosting tax revenues and diminishing their reliance on foreign borrowing, Asakawa said.