Additionally, some central banks in the emerging markets hiked interest rates to combat rising inflation. For example, Brazil raised the benchmark lending rate to 10.75%. [Warming Up to Brazilian Bonds With ETFs]

Other countries are seeing their current accounts improve – a heavy deficit typically shows imports outpacing exports, which means the countries are demanding more foreign currency-denominated goods.

WisdomTree Emerging Currency Fund

For more information on global currencies, visit our currency ETFs category.

Max Chen contributed to this article.