“The five markets with most significant current account deficits – India, Brazil, Turkey, Indonesia, South Africa – constitute 9% of world GDP and less than 7% of world equity market cap – foreign banks’ exposure to them seems to be small – hence unlikely to derail global growth, and global equities.” (Goldman Sachs)
Interest rates have gone up and has caused borrowing costs to rise globally. The spike in U.S. debt yields along with the rising dollar has not been healthy for emerging markets with large current account deficits. The demand for emerging market assets have lessened. Capital leaving Emerging Markets and flowing back to Developed Markets.
More on Currency Performance: https://brokenmarkets.wordpress.com/2013/08/21/currency-performace/