SYDNEY, AAP – Shares had their biggest fall in more than four weeks on the Australian market as investors responded to the prospect of global interest rates moving higher.

The benchmark S&P/ASX200 index dropped 0.37 per cent, and mining shares lost 1.8 per cent, after the US Federal Reserve brought forward estimates of higher rates.

Most Federal Reserve officials after a two-day policy meeting projected rates would need to rise in 2023 as the US economy surges and inflation climbs.

On the ASX, telecommunications shares lost almost two per cent while energy shares shed 1.87 per cent.

The ASX200 closed lower by 27.2 points, or 0.37 per cent, to 7359.

The All Ordinaries closed down by 32.9 points, or 0.43 per cent, to 7600.5.

The Australian dollar was buying 76.20 US cents at 1619 AEST, lower from 76.92 US cents at Wednesday’s close.