The currencies of many Emerging Market countries, especially the ones with current account deficits, will probably face renewed downward pressure. We are seeing it right now and we saw it last summer (when Fed officials started talking about curtailing bond purchases). The result then was large currency movements.
The spike in U.S. debt yields caused borrowing costs to rise globally, which, along with the rising dollar, was not healthy for emerging markets with large current account deficits. Emerging Markets faced financial stress from higher US interest rates and higher oil price.
“Current account deficits tend not to appear overnight, nor do overvaluations or crowded trades.” (Citi)
Not just Southeast Asia. There is also current account deficits and the potential for trouble in Eastern Europé as well.