Emerging market currencies are stuck between a rock and hard place. To the west, the US appears in the midst of an economic acceleration, while to the east, China is slowing.
For some of those in the middle, the great economic powers have got it the wrong way round. The better scenario for them is the one which previously played out. In that case a booming Chinese economy reflected its good fortune on its emerging market peers, while a weaker US flooded the world, and particularly emerging markets, with liquidity through its attempts to stimulate its economy.
